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DPM.TO ·

Dundee Precious Metals Announces Update to Operations at Tsumeb

Corporate Updates

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DUNDEE PRECIOUS METALS ANNOUNCES UPDATE TO OPERATIONS AT TSUMEB

Toronto, September 5, 2019 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the

Company”) announces that on September 3, DPM had an incident at its Tsumeb smelter following

a pressurization event in the Ausmelt offgas system during a restart after routine maintenance

activities. Regrettably, injuries were sustained by two employees, both of whom are receiving

appropriate care.

“The safety of our employees continues to be our highest priority” stated Rick Howes, President

and CEO. “We are committed to supporting the individuals that have been injured to achieve a

fast and full recovery. A full investigation into the cause of this incident is underway to ensure we

prevent such incidents in the future.”

The Company has initiated the required repairs to the offgas system which are expected to take

10 to 14 days , during which the Ausmelt system will not be in operation. With this estimated

additional downtime, t he smelter is still trending towards the low end of its 2019 guidance of

between 225,000 and 250,000 tonnes of complex concentrate smelted. The planned maintenance

shutdown for the fourth quarter of 2019 will occur as originally schedu led. Following recent

operational improvements, the next Ausmelt shutdown is not expected until 2021 allowing for

additional smelter throughput in 2020.

About Dundee Precious Metals

Dundee Precious Metals Inc. is a Canadian based, international gold mining company engaged

in the acquisition of mineral properties, exploration, development, mining and processing of

precious metals. The Company's operating assets include the Chelopech op eration, which

produces a gold-copper concentrate containing gold, copper and silver and a pyrite concentrate

containing gold, located east of Sofia, Bulgaria; the Ada Tepe operation, which produces a gold

concentrate containing gold and silver, located in southern Bulgaria; and the Tsumeb smelter, a

complex copper concentrate processing facility located in Namibia. DPM also holds interests in a

number of developing gold and exploration properties located in Canada and Serbia, and its

10.3% interest in Sabina Gold & Silver Corp.

Cautionary Note Regarding Forward Looking Statements

Certain statements and other information included in this press release and our other disclosure

documents constitute “forward looking statements” or “forward looking inform ation” within the

meaning of applicable securities legislation, which we refer to collectively hereinafter as “Forward

Looking Statements”. Forward Looking Statements are statements that are not historical facts

and are generally, but not always, identifi ed by the use of forward looking terminology such as

“plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”,

“forecasts”, “outlook”, “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. The Forward looking statements in this

press release relate to, among other things the timing and expected duration of maintenance

shutdowns and the future operating and financial performance at the Tsumeb smelter. Forward

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Looking Statements are based on certain key assumptions and the opinions and estimates of

management and Qualified Persons (in the case of technical and scientific information), 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. In addition to factors already discussed in this

document, such factors include, among others: conclusions of economic evaluations and

economic studies; changes in project parameters as plans continue to be refined; 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; uncertainties and

risks inherent to developing and commissioning new mines into production, such as Ada Tepe,

which may be subject to unforeseen delays, costs or other issues; 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; social and non -

governmental organizations (“NGO”) opposition to mining projects; fluctuations in metal and acid

prices, tol l rates and foreign exchange rates; unanticipated title disputes; claims or litigation;

limitation on insurance coverage; cyber -attacks; differences in U.S. and Canadian practices for

reporting Mineral Reserves and Mineral Resources; lack of suitable infra structure or damage to

existing infrastructure; delays in obtaining or failure to obtain government permits, or non -

compliance with permits; as well as those risk factors discussed or referred to in any other

documents (including without limitation the Co mpany’s most recent Annual Information Form)

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. The reader has been cautioned that the

foregoing list is not exhaustive of all factors which may have been used. Although the Company

has attempted to identify important factors that could cause actual actions, events or results to

differ materially from those described in Forward Looking Statements, there may be other factors

that cause actions, events or results not to be anticipated, estimated or intended. 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 an ticipated in such statements. The Company’s

Forward Looking Statements reflect current expectations regarding future events and speak only

as of the date hereof. 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.

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For further information, please contact:

DUNDEE PRECIOUS METALS INC.

Rick Howes

President and

Chief Executive Officer

Tel: (416) 365-2836

[email protected]

Michael Dorfman

Executive Vice President, Corporate Development

Tel: (416) 365-5090

[email protected]

Janet Reid

Manager, Investor Relations

Tel: (416) 365-2549

[email protected]