Life of Mine Plan For The Ada Tepe Gold Mine

TORONTO – Dundee Precious Metals Inc. announced the updated Mineral Resource and Mineral Reserve Estimate with additional gold production over the life of mine (LOM) for its Ada Tepe gold mine in Bulgaria. Improved LOM plan, with an estimated increase in recovered gold to concentrate of approximately 66,000 ounces (“K oz.”) and higher average gold grade of 5.2 grams per tonne (“g/t”), compared with 4.6 g/t in the previous 2020 LOM plan. Average of approximately 16,500 ounces of additional gold production per year for 2023 through 2026. Expected to improve DPM’s previously issued three-year outlook for gold production, which will be updated with the release of the Company’s fourth quarter and year-end 2022 financials on February 16, 2023.

“Since commissioning in 2019, Ada Tepe has continued to outperform our expectations,” said David Rae, President and CEO. “We are confident that Ada Tepe will continue to deliver strong results, supported by this improved life of mine plan.”

Based on the final pit design, a strategic mine planning study was conducted to optimize net present value of mine cash flows, balanced against other considerations including mine production, process plant throughput rates, stockpiling capacity, and mine life. The updated LOM plan maintains production through 2026 and reflects an increase of 66,000 ounces of total gold recovered with a higher LOM gold grade of 5.19 g/t, relative to the same period in the previous 2020 LOM plan. Additionally, it is expected to improve DPM’s previously issued three-year outlook for production, which the Company will update with its fourth quarter and year-end 2022 financial results in February.

To ensure higher confidence geologic modeling for mine planning and scheduling, DPM elected to complete all operational grade control drilling within the remaining LOM pit volume ahead of mining, which was completed in Q1 2022. The updated Mineral Resource and Mineral Reserve estimate for Ada Tepe reflects the results of 290 kilometers of grade control drilling completed since the previous 2020 update. Effectively all of the Mineral Resource estimate has now been converted to the Measured category. This drilling has successfully defined additional mineralization within the northern regions of the deposit, which was previously interpreted as being less extensive, due to the limitations of the wider drilling grid spacings at that time.

The updated Proven and Probable Mineral Reserve comprises of 415,000 contained gold ounces and 250,000 contained silver ounces. Mineral Reserves are estimated based on a Mine Shape Optimizer (“MSO”) diluted block model, used to account for operational mine dilution and expected level of selectivity.

The Upper Zone was modeled using an Indicator Kriging-based approach to define grade shells. Using the Indicator Kriging numeric outputs, a probability threshold was chosen, which was used to constrain volumes within the block model for grade estimation (gold, silver and sulphur) using Ordinary Kriging. The probability threshold was chosen based on benchmarking studies against operational grade control modeling and monthly reconciliation outputs.

Wall Zone and Basement Zone mineralization models were based on sectional interpretation of geological logging data and gold assay data. Grade estimation within these volumes was undertaken using Ordinary Kriging and in-situ dry bulk density was assigned on the basis of oxidation state and lithology.

The block model was classified in accordance with CIM guidelines as Measured, Indicated and Inferred Mineral Resources based on confidence in data, geological and grade continuity, density measurements and estimation quality. Reasonable prospects for eventual economic extraction (“RPEEE”) are supported through a pit optimization constraint applied to Mineral Resources, using a gold price of US$1,600 per ounce.

In 2022, exploration activities focused on a resource extension drilling program at Ada Tepe and other satellites in the Khan Krum mine concession area, as well as target delineation campaigns on the Chiirite and Dalbokata Reka exploration lincense . Approximately 9,400 meters were drilled over 47 holes during the year.

At Ada Tepe, a dedicated drilling program to test for potential extensions of mineralization to the north and to test for conceptual feeder structures at depth was implemented with 17 holes consisting of 2,686 meters. Results of extensional drilling to the north of the deposit returned a series of narrow intervals of mineralization above the mine cut-off, that may represent incremental extensions of Upper Zone vein swarms. The Company is assessing if follow-up drilling is required in this area.

On the Chiirite exploration license, the drilling program at the Golden Creek and Cernichino prospects was completed with a total of 3,435 meters over 11 holes during the year. From this program, encouraging results were received from drill hole ZDDD004 on the Cernichino target, which returned 10 meters at 1.98 g/t and 1.21 g/t Ag from 170 meters downhole.This intercept will be followed up in the 2023 exploration drill program, which will also test for structurally controlled, granite hosted mineralization and skarn hosted mineralization targets at Kara-Tepe.

During 2023, DPM will be employing a focused targeting approach to evaluate undercover targets within the Krumovgrad camp. Targeting methodologies will be driven by integration and re-interpretation of existing data, which will be assisted by machine learning, additional geophysical methods and spectral satellite image processing, followed by approximately 11,000 meters of drilling. Drilling is initially planned to focus on the Chiirite license area, while the Company finalizes permitting for the Krumovitsa license, which is expected in Q3 2023. Subject to the timing of permits, there is potential to increase drilling activities to 26,000 meters.