DPM EXPLORATION CONFIRMS EXTENSION OF LIMESTONE HOSTED GOLD MINERALIZATION, SERBIA

DPM EXPLORATION CONFIRMS EXTENSION OF LIMESTONE HOSTED GOLD MINERALIZATION, SERBIA Toronto, October 1, 2008 - Dundee Precious Metals Inc. (TSX: DPM; DPM.WT) (the Company or DPM ) announced that exploration along the western margin of the Timok Magmatic Complex ( TMC ) in northeastern Serbia has confirmed the limestone hosted belt of gold mineralization extends more than 25 km. HIGHLIGHTS Initial excavation and sampling of trenches, using a notional trench spacing of 800m, along the strike extent of the target zone has confirmed significant gold mineralization over the entire 25 km length sampled to date. All identified anomalous areas have returned gold mineralized intercepts, using a cut off grade of 0.5g/t Au. In addition, broad zones of strongly anomalous gold mineralization have been outlined, using a notional 0.1g/t Au geological cut off grade. Gold mineralization is associated with deformed and silicified limestones, marbles and skarns, intruded by andesites and monzonites. Key trench gold intercepts include the following (from North to South): o Korkan JASTR009 45m at 3.0g/t from 0m JASTR009 37m at 3.9g/t from 86m o Bigar BITR001 6m at 2.9g/t from 164m BITR001 24m at 1.0g/t from 376m BITR002 12m at 1.1g/t from 66m BITR002 12m at 2.8g/t from 88m BITR002 36m at 1.1g/t from 108m o Kraku Pester PETR002 18m at 1.8g/t from 0m o PETR002 28m at 3.0g/t from 26m Umka PCTTR010 11m at 1.9g/t from 193m UMTR011 10m at 1.5g/t from 212m UMTR012 6m at 1.8g/t from 174m The gold mineralized zone is open in both directions and DPM has secured exploration licences to cover all prospective parts of the limestone sequence along the western margin of the TMC. Exploration will continue to further determine the controls on gold mineralization and to generate drill targets. In addition, final gold assays have been received from the remainder of the proof of concept drilling program from the limestone hosted gold Bozuluj Prospect in the Tilva Njagra Concession Licence and highlights include the following: o BZDD008 12m at 1.3g/t from 54m o BZDD009 17m at 0.7g/t from 0m o BZDD010 7.4m at 1.2g/t from 6.6m o BZDD012 12m at 1.1g/t from 36m o BZDD014 18m at 3.2g/t from 167m

Dundee Precious Metals Inc. Page 2 BACKGROUND Following the successful proof of concept exploration results on the limestone hosted gold target at Bozuluj, a program of detailed geological mapping and trench sampling has been carried out along the 25 km length of soil sampling anomalies within the Potoj Cuka and Jasikovo exploration licenses within the TMC. The location of the two licenses is displayed in Figure 1. Geological mapping of the limestone hosted gold belt has determined a complex geological and structural sequence of limestone, marble, skarn, monzonite, diorite dykes, andesite, schist and sediments. Further work is required to determine, in more detail, the structural and lithological controls on the gold mineralization. The initial program of scout trenching has used a notional 800m spacing between trenches within the four main anomalous areas (from north to south as follows): Korkan, Bigar, Kraku Pester and Umka. Figure 2 displays the location of the key prospects with the background image of Au-Ag-As-Sb-Hg correlation from the soil sampling data. The figure also summarizes the geological association at each prospect. For the majority of the trench sampling program a two metre sample interval has been used and the samples have been prepared at the SGS managed laboratory facility at Bor, eastern Serbia and have been assayed at the SGS managed laboratory at Chelopech in Bulgaria. Following DPM exploration standard procedures, a full suite of field and laboratory duplicates and replicates along with internationally accredited standards have been submitted with each batch of samples. A one metre sampling interval has been used for the Bozuluj proof of concept diamond drilling program. Composite samples for metallurgical testing have been collected and compiled from the Bozuluj core and have been dispatched to SGS Lakefield, Toronto, Canada for first pass metallurgical testing. Results from the metallurgical test work are awaited. RESULTS The initial trench sampling program has been extremely successful, with gold mineralization being encountered in almost all trenches excavated to date. Table 1 highlights key intercepts from the trench sampling program, using a cut off grade of 0.5g/t Au, whilst Table 2 displays selected intercepts using a geological cut off grade of 0.1g/t Au in order to illustrate the frequent broad zones of anomalous gold that surround the mineralized intervals using a 0.5g/t Au cut off. Table 3 summarizes the results of the proof of concept drilling program at Bozuluj, with intersections calculated using a cut off grade of 0.5g/t Au, a minimum intersection length of 5m and a maximum contiguous interval of waste of 5m. Note that holes BZDD001 to BZDD007 have previously been reported but are included in Table 3 for completeness. The proof of concept program is considered to have been very successful as numerous encouraging intersections have been returned, given the wide spacing of the first pass drilling program. It is of note that several of the trenches began or ended in mineralization, including BITR002, BITR004 and BITR010 at the Bigar prospect, PETR001, PETR002 and PETR005 at Kraku Pester and JASTR009 at Korkan. Geological mapping has indicated that the mineralization is structurally controlled and is dominantly hosted within strongly altered limestone, marble and skarn which are spatially associated with intrusive rocks including monzonite, diorite dykes and andesite bodies. Further mapping and structural studies, coupled with re-interpretation of the extensive geophysical data that has been collected is required to further delineate the controls on mineralization prior to targeting further drilling. Infill trenching is also required to refine the numerous targets that have been identified to date.

Dundee Precious Metals Inc. Page 3 Stream sediment sampling (both traditional stream sediments samples and bulk leachable gold, or BLEG samples) have been collected from the remaining exploration licences which have been staked to cover the remainder of the prospective geological trend. The stream sediment samples have been dispatched for multi-element analysis by inductively coupled plasma (ICP-MS) techniques using equipment at the ALS Chemex laboratory, Perth, Australia. The BLEG samples have been sent to SGS Welshpool, Perth, Australia for leach analysis by method BLL62N. Soil sampling has also been initiated to extend coverage to the north and west of the Korkan prospect at the northern end of the currently identified anomalous zone. The exploration to date has confirmed the existence of a greater than 25 km long zone of strongly anomalous gold mineralization. Much further work is required to begin to develop both a model of the controls and location of the gold mineralization in this newly discovered belt and to refine targets for follow up drilling. Nevertheless it is clearly evident that a new gold mineralized province has been outlined along the western margin of the TMC. Dr. Julian F. H. Barnes, a qualified person under NI 43-101 and Executive Vice President of DPM, has supervised the preparation of the technical data included in this press release. Dundee Precious Metals Inc. is a Canadian based, international 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 the Krumovgrad Gold Project, a mining development project, both located in Bulgaria, and is engaged in mineral exploration activities in Serbia. In addition, Dundee Precious owns the Back River gold exploration project in Nunavut, Canada and a 95% interest in the Kapan Mine in Armenia. 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 Risk 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. For further information please contact: DUNDEE PRECIOUS METALS INC. Jonathan Goodman Gabriela M. Sanchez President & Chief Executive Officer Vice President, Investor Relations Tel: (416) 365-2408 Tel: (416) 365-2549 Email: jgoodman@dundeeprecious.com Email: gsanchez@dundeeprecious.com

Dundee Prrecious Metals Inc. Figure 1: Location of Potoj Cukaa and Jasikovo exploration licenses within the Timok Magmattic Complex. P Page 4

Dundee Precious Metals Inc. Page 5 Figure 2: Location of key prospects.

Dundee Precious Metals Inc. Page 6 TABLE 1 TRENCH SAMPLING RESULTS: SEPTEMBER 2008 Cut off grade: 0.5g/t Au Minimum Interval: 4m Maximum contiguous waste: 6m TRENCH PROSPECT FROM TO INTERVAL AU AG (Metre) (Metre) (Metre) (g/t) (g/t) BITR001 BIGAR 26 44 18 0.61 2.0 BITR001 BIGAR 164 170 6 2.95 5.5 BITR001 BIGAR 376 400 24 1.02 0.5 BITR002 BIGAR 66 78 12 1.09 0.5 BITR002 BIGAR 88 100 12 2.79 0.5 BITR002 BIGAR 108 144 36 1.07 0.5 BITR002 BIGAR 150 156 6 1.31 0.7 BITR002 BIGAR 234 238 4 0.65 0.5 BITR004 BIGAR 154 162 8 1.26 4.6 BITR004 BIGAR 224 238 14 0.58 0.5 BITR005 BIGAR 66 74 8 1.09 41.4 BITR008 BIGAR 194 198 4 1.17 3.8 BITR010 BIGAR 0 6 6 0.98 20.6 BITR013 BIGAR 116 124 8 1.11 37.0 BITR013 BIGAR 132 136 4 1.60 33.2 BITR015 BIGAR 128 136 8 1.02 0.5 PCTTR006 BIGAR 86 90 4 1.03 1.1 PCTTR010 UMKA 161 177 16 0.84 1.1 PCTTR010 UMKA 193 204 11 1.92 1.5 UMTR011 UMKA 64 70 6 0.51 0.5 UMTR011 UMKA 212 222 10 1.49 2.94 UMTR012 UMKA 174 180 6 1.84 0.5 PETR001 KRAKU PESTER 279 297 18 0.89 0.5 PETR001 KRAKU PESTER 331 345 14 0.89 0.5 PETR002 KRAKU PESTER 0 18 18 1.81 0.5 PETR002 KRAKU PESTER 26 54 28 3.03 0.7 PETR002 KRAKU PESTER 150 154 4 0.80 0.8 PETR002 KRAKU PESTER 184 190 6 0.58 0.7 PETR005 KRAKU PESTER 18 26 8 0.59 0.7 JASTR009 KORKAN 0 45 45 3.02 1.4 JASTR009 KORKAN 50 59 9 1.32 0.7 JASTR009 KORKAN 74 78 4 0.65 0.5 JASTR009 KORKAN 86 123 37 3.88 1.9 JASTR009 KORKAN 166 177 11 0.52 0.5

Dundee Precious Metals Inc. Page 7 TABLE 2 TRENCH SAMPLING RESULTS: SEPTEMBER 2008 Notional cut off grade: 0.1g/t Au Geological Intervals TRENCH PROSPECT FROM TO INTERVAL AU AG (Metre) (Metre) (Metre) (g/t) (g/t) BITR001 BIGAR 14 102 88 0.29 0.9 BITR001 BIGAR 130 216 86 0.39 0.9 BITR001 BIGAR 362 482 120 0.34 0.5 BITR002 BIGAR 0 238 238 0.49 0.5 BITR004 BIGAR 124 162 38 0.54 1.4 BITR004 BIGAR 206 244 38 0.39 0.7 BITR005 BIGAR 40 84 44 0.36 11.5 BITR008 BIGAR 180 202 22 0.33 2.7 BITR008 BIGAR 216 254 38 0.13 2.9 BITR008 BIGAR 308 320 12 0.71 0.9 BITR010 BIGAR 0 58 58 0.23 5.9 BITR011 BIGAR 18 40 22 0.25 4.6 BITR013 BIGAR 112 138 26 0.71 22.3 BITR015 BIGAR 126 144 18 0.61 0.9 PCTTR006 BIGAR 85 96 11 0.48 0.8 PCTTR006 BIGAR 105 143 38 0.24 1.8 PCTTR010 UMKA 148 223 75 0.58 0.9 UMTR011 UMKA 64 70 6 0.51 0.5 UMTR011 UMKA 212 222 10 1.49 2.94 UMTR012 UMKA 174 180 6 1.84 0.5 PETR001 KRAKU PESTER 259 345 86 0.49 0.5 PETR002 KRAKU PESTER 0 54 54 2.54 0.6 PETR002 KRAKU PESTER 132 156 24 0.31 0.6 PETR002 KRAKU PESTER 168 194 26 0.30 0.5 PETR005 KRAKU PESTER 2 40 38 0.27 0.5 JASTR008 KORKAN 59 69 10 0.32 9.6 JASTR009 KORKAN 0 45 45 3.02 1.4 JASTR009 KORKAN 50 205 155 1.23 0.8 JASTR009 KORKAN 74 78 4 0.65 0.5 JASTR010 KORKAN 33 54 21 0.12 2.1 JASTR010 KORKAN 115 172 57 0.18 3.7

Dundee Precious Metals Inc. Page 8 Table 3 BOZULUJ PROSPECT Proof Of Concept Diamond Drilling Cut Off Grade: 0.5g/t Au Minimum Intercept Length: 5m Maximum Contiguous Waste: 5m HOLEID FROM TO INTERVAL AU Ag (Metre (Metre) (Metre) (g/t) (g/t) BZDD001 14.0 27.0 13.0 0.94 1.0 BZDD001 56.0 61.0 5.0 1.27 0.5 BZDD001 169.0 175.0 6.0 0.76 0.4 BZDD002 0.0 6.0 6.0 0.84 0.6 BZDD002 78.0 86.0 8.0 0.73 0.6 BZDD005 28.0 47.0 19.0 3.64 0.6 BZDD006 57.0 63.0 6.0 2.27 0.6 BZDD007 63.0 69.0 6.0 1.57 0.6 BZDD008 37.0 43.0 6.0 0.95 0.9 BZDD008 54.0 66.0 12.0 1.29 0.5 BZDD009 0.0 17.0 17.0 0.66 0.3 BZDD010 6.6 14.0 7.4 1.24 0.2 BZDD011 48.0 57.0 9.0 0.69 0.5 BZDD012 36.0 48.0 12.0 1.14 0.6 BZDD013 149.0 154.0 5.0 0.87 * BZDD013 161.0 166.0 5.0 0.64 * BZDD014 167.0 185.0 18.0 3.22 * Notes: 1) Assay samples generally in 1m intervals (except due to core loss) 2) Sample weight approx. 3kg 3) No top cut applied 4) Intersections do not represent true width * Pending