Name and Location
Krumovgrad gold project, Bulgaria.

Client
Dundee Precious Metals.

Project Description
Krumovgrad has proven and probable reserves of 6.2-million tonnes grading 4.04 g/t of gold and 2.2 g/t of silver. Total measured and indicated resources are estimated at 6.9-million tonnes grading 3.86 g/t of gold and 2.15 g/t of silver. Inferred resources are estimated 300 000 t/y grading at 1.3 g/t of gold and 1.06 g/t of silver.

The project plan envisages the construction of an openpit mining operation comprising a process plant, which will use conventional crushing, grinding and flotation processing for gold extraction, and the disposal of thickened tailings together with the mine rock waste in an integrated mine waste facility.

Total gold and silver production has been estimated at 685 549 oz and 309 915 oz respectively.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $187.6-million, and an internal rate of return of 24.8%, at $1 250/oz gold and $15/oz silver, with a payback of 2.4 years.

Value
The project has a capital estimate of $178-million.

Duration
Subject to the completion of financing arrangements and board approval, construction could start as early as the third quarter of 2016, with first production scheduled for the second half of 2018.

Latest Developments
None stated.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
Dundee Precious Metals, tel + 1 416 365 5191, fax +1 416 365 9080 or email info@dundeeprecious.com.