Canadian Dundee Prec. Metals buys 80% shares of Armenian Deno Gold

Regnum, Russia
Aug. 11, 2006

Canadian Dundee Precious Metals buys 80% of shares of Armenian Deno
Gold Mining Company

Dundee Precious Metals (DPM) Company from Canada has bought 80% of
shares of Deno Gold Mining Company (DGMC), an Armenian company set up
in 2004. The only shareholder of the Armenian enterprise was a
British investment company.
The sale contract was signed in Yerevan on August 10. The cost and
the terms of the deal will be made known shortly. The new owner of
DGMC is going to make long-term investments in the development of
mines in Kapan. Particularly, DPM will shortly invest $10mln in
DGMC’s assets for prospecting and other capital activities.

DGMC develops the Shamkhor and Central Kapan mines. The Canadian
company is going to raise the annual output to 1,000,000 tons from
present 300,000 tons.