Mr. David Rae reports

DUNDEE PRECIOUS METALS ANNOUNCES HIGH-GRADE UNDERGROUND MAIDEN MINERAL RESOURCE ESTIMATE OF 1.8 MILLION INFERRED GOLD OUNCES AT ITS COKA RAKITA PROJECT IN SERBIA

Dundee Precious Metals Inc. has released a maiden mineral resource estimate of 1.78 million ounces for its 100-per-cent-owned Coka Rakita gold project in eastern Serbia, where Dundee announced a high-grade discovery in January, 2023.

Highlights:

• Strong maiden mineral resource estimate: Inferred mineral resource estimate (MRE) of 9.79 million tonnes (Mt) at a grade of 5.67 grams per tonne (g/t) for 1.78 million ounces of gold. The maiden MRE was completed after only one full year of drilling on the project and is based on approximately 80,723 metres of drilling in 173 holes.
• Higher-grade core of mineralization: The MRE contains a significant portion of gold ounces within a continuous high-grade core of mineralization that amounts to 2.81 Mt at a grade of 10.12 g/t Au for 914,000 ounces of gold. Once sufficient drilling has been completed to upgrade the mineral resource confidence, this higher-grade core has the potential to drive strong economics by accessing higher-than-average grades during the early years of a mine plan.
• Upside exploration potential: Dundee is continuing its drilling program focused on extending the limits of Coka Rakita, which remains open to the northeast and to southwest, and is also aggressively pursuing additional skarn targets on the Coka Rakita licence as well as on three additional licences to the north and the south.
• Advancing to a preliminary economic assessment (PEA): Based on the favourable size and quality of the MRE, Dundee will continue to accelerate the project and expects to complete a PEA on the project in the second quarter of 2024, targeting a throughput rate of 850,000 tonnes per annum.
• Attractive organic growth opportunity: Coka Rakita benefits from good infrastructure, including nearby existing roads and power lines. The project is located in close regional proximity to Dundee's existing operations in Bulgaria and is a strong fit with the company's underground mining and processing expertise, with metallurgical test work demonstrating gold recoveries of approximately 90 per cent by gravity concentration and conventional flotation.

"The initial mineral resource estimate marks a significant milestone for DPM's future growth and confirms Coka Rakita's potential as an attractive, high-quality gold project," said David Rae, president and chief executive officer of Dundee Precious Metals.

"Since we announced the initial discovery only 11 months ago, Coka Rakita has rapidly grown into a 1.8-million-ounce deposit, a remarkable achievement over such a short period of time, and we plan to continue aggressively exploring at Coka Rakita and the surrounding licences to generate new discoveries.

"We are continuing to accelerate the project through our development pipeline, including advancing a PEA which is targeted for completion in the second quarter of 2024. We are excited by Coka Rakita's potential in a region where we have had a presence for many years and where we have developed strong relationships with local stakeholders."

Maiden mineral resource estimate

The inferred MRE comprises 1.78 million ounces of gold contained within 9.79 million tonnes grading 5.67 g/t Au and assumes an underground mining scenario.

Gold-rich skarn mineralization is hosted within carbonate-rich sandstones and conglomerates, located on the hangingwall of a sill-like body and abutting a monzonite intrusive body to the west. The mineralization forms a shallow-dipping tabular mineralized body located between 250 and 450 metres below surface, measuring 650 metres long, up to 350 metres wide and with variable thickness from less than 20 metres in the margins to more than 100 metres in the core of the mineralized zone. Coarse gold is often observed in areas of intense retrograde skarn alternation and is found mainly in proximity to syn-mineral diorites within the higher-grade core of the deposit. The current MRE has been conducted on the portion of the prospect where gold-rich skarn mineralization occurs.

The drill hole database was handed over as of Nov. 16, 2023. A total of 173 drill holes totalling 80,723 metres were included in the estimation of the mineral resource. The current drill hole spacing within the mineralized domains is approximately 30 metres by 30 metres in the core of the system, with a grid of up to 60 metres by 60 metres on the periphery. Gold grades within skarn domains have been determined systematically using a screen fire assaying technique, which is preferred for mineralization with coarse gold. Grade capping was applied to composites to limit the influence of anomalously high-grade values.

Mineral resource domains were created within volumes of moderate to intense skarn alteration and guided by economic composites at a one g/t Au cut-off value. Detailed lithology and structural models were developed and used to constrain domain extents, as well as to incorporate postmineralization diorite sills which cut across the mineralization. Block grade estimates have been undertaken for gold, silver, copper, sulphur and arsenic using ordinary kriging at a 10 m E by 10 m N by 10 m Z parent block size with subcelling to honour domain volumes.

A break-even cut-off value of two g/t Au and a minimum width constraint of five metres by five metres by 2.5 metres was used to define optimized minable shapes using Datamine's minable shape optimizer (MSO). These shapes were subsequently smoothed and used to constrain continuous zones of mineralization for reporting the final mineral resource statement.

The application of MSO shapes at the MRE stage provides a robust estimate for the purposes of a PEA, and higher confidence in the potential for the conversion of mineral resources into minable tonnes and grades for the purposes of a mine plan for the PEA. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The MSO shapes have been used to ensure mineral resources demonstrate reasonable prospects for eventual economic extraction.

Material within the reporting MSO constraints (smoothed) was classified as inferred mineral resources according to mineral resource confidence categories defined in the Canadian Institute of Mining, Metallurgy and Petroleum definition standards for mineral resources and mineral reserves. Data quality and quantity, geological and grade continuity, and confidence in the grade, density and reasonable prospects for eventual economic extraction (RPEEE) criteria were considered when classifying the MRE. Given the relatively continuous and stratified mineralization style at Coka Rakita, the company has reason to expect that the majority of inferred mineral resources could be upgraded to indicated mineral resources with infill drilling.

Higher-grade core of mineralization

Within the core of the Coka Rakita deposit is a zone of continuous higher-grade mineralization hosted within intense retrograde skarn alteration. By digitizing an outline of spatially contiguous blocks within the mineral resource that have an estimated grade value higher than approximately five g/t Au and including internal dilution, the block model reports 2.81 Mt at a grade of 10.12 g/t Au for 914,000 ounces of gold. Once sufficient drilling has been completed to upgrade the mineral resource confidence, this higher-grade core has the potential to drive strong economics by accessing higher-than-average grades during the early years of a mine plan.

When reported within the smoothed MSO constraints used to report the MRE, the block model sensitivity to cut-off grade is shown herein. This table does not constitute a mineral resource statement and is shown to illustrate the grade and tonnage sensitivity to grade cut-off value.

Due to the presence of coarse gold and the confidence level of inferred mineral resources, there is inherent uncertainty in the level of mining selectivity that can be achieved as the cut-off grade is increased. Further drilling, and potentially bulk sampling, is required to assess the short-range grade continuity of the higher-grade mineralization.

Exploration potential

Dundee is planning an aggressive exploration program for 2024 including:

• Approximately 30,000 metres of infill, hydrological and geotechnical drilling, with the goal of reclassifying the current mineral resource to the indicated mineral resource category. This also includes infill drilling to test the extents of Coka Rakita, which remains open to the northeast and to southwest;
• 55,000 metres of additional exploration drilling at existing skarn targets and to test for manto-like copper-gold skarn identified across four licences held by Dundee, including Coka Rakita, Potaj Cuka, Pester Jug and Umka. Exploration and evaluation expenditures for the above drilling programs, PEA and related technical work are expected to be $30-million (U.S.) to $35-million (U.S.) in 2024, which will be updated in early Q1 2024 as part of the company's detailed 2024 guidance and updated three-year outlook.

Attractive organic growth opportunity

With a sizable maiden MRE and significant additional exploration potential, Coka Rakita is an attractive organic growth opportunity that Dundee will be prioritizing for advancement.

The project is located approximately 35 kilometres from the city of Bor in Serbia, is proximal to existing roads and power lines, and is approximately 320 kilometres northwest of Dundee's Chelopech mine in Bulgaria, which will allow easy access to existing technical support functions. The project is a strong fit with the company's underground mining and processing expertise, with metallurgical test work demonstrating gold recoveries of approximately 90 per cent by gravity concentration and conventional flotation.

As previously reported on Nov. 15, 2023, metallurgical test work confirmed the viability of a combined gravity concentration and flotation circuit at different target grades.

Next steps

In parallel to its exploration and infill drilling activities, Dundee has advanced activities to accelerate the project, including initiating geotechnical and hydrogeological drilling, the next phase of metallurgical test work, evaluating locations for potential site infrastructure, as well as stakeholder engagement and permitting activities.

The company has already commenced certain scoping-level activities and expects to complete a PEA on the project in the second quarter of 2024, targeting a throughput rate of 850,000 tonnes per annum.

The next phase of metallurgical test work will focus on the variability at Coka Rakita to ascertain the metallurgical and comminution performance of the different subtypes of mineralization present, including testing on more copper-rich areas of the prospect.

Permitting preparation activities are under way, with good support and engagement from key regional and national authorities.

Stakeholder engagement

Consistent with its approach across all operations and projects, Dundee seeks to build and maintain strong partnerships with local communities and governments. The company has had a local presence in Serbia since 2004 and has developed strong relationships in the region and will continue to pro-actively engage with all stakeholders as the project advances.

Planning for the project will be highly focused on ensuring responsible environmental management and social development in line with industry best practices. Dundee is committed to working closely with local communities around the Coka Rakita project to understand and support local development opportunities, with a focus on maximizing benefits of the project for Serbia.

Technical information and technical report filing

The MRE for Coka Rakita and other scientific and technical information which supports this news release were prepared by Dundee with review and guidance at various stages provided by Maria O'Connor, MAIG (membership ID: 5931), technical director, mineral resources, Environmental Resources Management (ERM, trading as CSA Global), in accordance with Canadian regulatory requirements set out in National Instrument 43-101 Standards of Disclosure for Mineral Projects. Ms. O'Connor is a qualified person for mineral resources as defined under NI 43-101 and is independent of the company.

Ross Overall, director, corporate technical services, of the company, who is a QP, as defined under NI 43-101, and Paul Ivascanu, general manager, exploration, of the company, have reviewed and approved the contents of this news release.

A technical report for the Coka Rakita gold project, prepared in accordance with NI 43-101, will be filed under the company's profile on SEDAR+ within 45 days of this news release. Readers are encouraged to read the technical report in its entirety, including all qualifications, assumptions, exclusions and risks that relate to the mineral resource.

About Dundee Precious Metals Inc.

Dundee Precious Metals is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia, Serbia and Ecuador. The company's purpose is to unlock resources and generate value to thrive and growth together. This overall purpose is supported by a foundation of core values, which guides how the company conducts its business and informs a set of complementary strategic pillars and objectives related to ESG(environmental, social, governance), innovation, optimizing the company's existing portfolio and growth. The company's resources are allocated in line with its strategy to ensure that Dundee delivers value for all of its stakeholders.

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