DPM AGREES TO INVEST IN CRESCENT GOLD LIMITED

Market Wire
September 14, 2006

SOURCE: Dundee Precious Metals Inc.

In accordance with regulatory requirements, Dundee Precious Metals
Inc. ("Dundee Precious", "DPM" or "the Company") (TSX: DPM) announces
that it has entered into a letter agreement to purchase from Crescent
Gold Limited (TSX: CRA)(ASX: CRE) ("Crescent") and certain officers
of Crescent an aggregate of 42,000,000 ordinary shares of Crescent at
a price of AUD$0.35 per share. The purchased shares shall be divided
as to 25,000,000 shares being issued from treasury by Crescent and
17,000,000 shares being purchased from certain officers of Crescent.

It is anticipated that the transaction will close in two tranches,
the first of which shall occur on or about September 29, 2006, or such
other date as the parties may agree, and shall consist of an aggregate
of 34,000,000 shares, being 17,000,000 treasury shares and 17,000,000
secondary shares. The second tranche of 8,000,000 shares shall close
upon Dundee Precious obtaining the approval of the Australian Foreign
Investment Review Board of the proposed acquisition of the shares and
the acquisition proceeding in accordance with the Foreign Acquisitions
and Takeovers Act. Upon completion of the transaction Dundee Precious
will own approximately 17.2% of the outstanding shares of Crescent.

The completion of the transaction is subject to, among other things,
due diligence and the receipt of all necessary regulatory, stock
exchange and corporate approvals, including the approval of the Toronto
Stock Exchange and the Australian Stock Exchange. The acquisition
of the Crescent shares by Dundee Precious is consistent with its
business model of making strategic investments in issuers in the
precious metals and mineral related sector. These shares are held for
investment purposes. This investment will be reviewed on a continuing
basis and such holdings may be increased or decreased in the future.

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 an 80% interest in the Kapan Mining Project in
Armenia. The Company also holds a significant and strategic portfolio
of investments in the precious metals and mineral related sector.

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 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.

Contacts: Dundee Precious Metals Inc.

Jonathan Goodman President & Chief Executive Officer (416) 365-2408
jgoodman@dundeeprecious.com

Dundee Precious Metals Inc.

Gabriela M. Sanchez Vice President Investor Relations (416) 365-2549
gsanchez@dundeeprecious.com