Mr. David Rae reports

DUNDEE PRECIOUS METALS ANNOUNCES SALE OF TSUMEB SMELTER FOR US$49 MILLION

Dundee Precious Metals Inc. has entered into a definitive share purchase agreement with a subsidiary of Sinomine Resource Group Co. Ltd. for the sale of its interest in the Tsumeb smelter located in Namibia, including all associated assets and liabilities, through the disposition of all of the issued and outstanding shares it indirectly holds in Dundee Precious Metals Tsumeb Holding Pty. Ltd. (DPMTH) for consideration of $49-million (U.S.) in cash.

"We are pleased to announce the sale of the Tsumeb smelter, which is consistent with our strategic objective of focusing on our gold mining assets and simplifying our portfolio going forward. We are extremely proud of the investments that we have made to transform Tsumeb's operational and environmental performance into a specialized custom smelter with a highly skilled work force," said David Rae, president and chief executive officer.

"We would like to thank the government of Namibia, the community of Tsumeb and our employees for their support over the past 13 years. We will work closely with Sinomine to ensure a smooth transition to support a successful future for the operation and all of its stakeholders."

Dundee Precious Metals acquired the smelter in 2010 to secure a processing outlet for the complex concentrate produced by the company's Chelopech mine in Bulgaria. With developments in the global smelting market and changes in the quality of the Chelopech concentrate, Dundee Precious Metals is able to place its Chelopech concentrate at several other third party facilities, providing secure and reliable processing alternatives at favourable terms.

Key terms of the transaction

Under the terms of the share purchase agreement, Dundee Precious Metals, through the sale of the shares of DPMTH, will transfer, on a debt-free and cash-free basis, all assets and liabilities associated with the Tsumeb smelter to Sinomine for consideration of $49-million (U.S.) in cash, subject to normal working capital adjustments following closing. The company has made limited representations and warranties and provided certain indemnities to Sinomine customary with transactions of this nature, subject to a liability cap equal to 50 per cent of the purchase price. The cash received by Dundee Precious Metals on closing will be less a $5-million (U.S.) holdback to be held in escrow for a period of six months to secure the company's indemnity obligations under the share purchase agreement.

In addition, pursuant to the share purchase agreement, Dundee Precious Metals is entitled to be paid all cash collected from IXM SA with respect to a positive balance in metal exposure outstanding at Tsumeb, currently estimated to be approximately $17.2-million (U.S.), which will constitute an increase in the purchase price.

The transaction is subject to customary closing conditions, including approval under the Namibia Competition Act and approvals required from Chinese regulatory authorities for overseas investments, and is expected to close in Q3 2024. Dundee Precious Metals expects to use the proceeds from the transaction to further strengthen its balance sheet and to support its core mining business in line with its disciplined capital allocation framework.

Cutfield Freeman & Co. Ltd. acted as financial adviser to Dundee Precious Metals in the transaction.

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 grow 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 and 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 Precious Metals delivers value for all of its stakeholders.

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