RESERVES OF SHAHUMYAN MINE ENOUGH TO CREATE HUGE PIT

ARKA
March 13, 2008

YEREVAN, March 12. /ARKA/.The reserves of the Shahumyan-based
gold polymetallic mine are enough to build a huge open pit, the
Deno Gold Mining Company told ARKA referring to the results of
exploratory drilling conducted in Armenia by the Dundee Precious
Metals Corporation.

The Deno Gold Mining Company represents the Dundee Precious Metals
Corporation in Armenia operating the Shahumyan polymetallic mine as
well as the copper-pyritic mine of the Kapan-based ore-mining and
processing enterprise.

The Kapan-based mine has two parts – the copper mine known as the
Central Deposits and the poly-metallic mine of copper, gold, silver,
zinc and lead known as the Shahumyan mine. The Shahumyan deposits are
currently being mined, Jonathan Goodman, the owner and president of
Dundee Precious Metals, said.

The volume of the Deno Gold Mining Company output reduced 4% in 2007
and totaled AMD 6.25bln. Deno Gold Mining focuses on the operation of
the Shahumyan gold polymetallic mine since the Central mine is quite
old and has exhausted its resources making it difficult to assess
its capacities.

The Shahumyan mine was launched in 1996, however, the real operation
started in 2002-2003 only.

Dundee Precious Metals is an ore mining company with the head office
based in Canada. The company is engaged in mining, purchasing,
exploring and processing precious metals. The company bought 95%
shares of the Kapan-based mine in 2006.