DPM Metals Inc. — Audit Report / Information 2021

Feb 18, 2022

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The accompanying consolidated financial statements of Dundee Precious Metals Inc. (the “Company”) and all information in this financial report are the responsibility of management. The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and, where appropriate, include management’s best estimates and judgments. Management has reviewed the financial information presented throughout this report and has ensured it is consistent with the consolidated financial statements.

Management maintains a system of internal control designed to provide reasonable assurance that assets are safeguarded from loss or unauthorized use, and that financial information is timely and reliable. However, any system of internal control over financial reporting, no matter how well designed and implemented, has inherent limitations and may not prevent or detect all misstatements.

The Board of Directors is responsible for ensuring that management fulfils its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the consolidated financial statements. The Board carries out this responsibility principally through its Audit Committee.

The Board of Directors appoints the Audit Committee, and all of its members are independent directors. The Audit Committee meets periodically with management and the auditors to review internal controls, audit results, accounting principles and related matters. The Board of Directors approves the consolidated financial statements on the recommendation from the Audit Committee.

PricewaterhouseCoopers LLP, an independent firm of Chartered Professional Accountants, was appointed by the shareholders at the last annual meeting to examine the consolidated financial statements and provide an independent professional opinion. PricewaterhouseCoopers LLP has full and free access to the Audit Committee.

(signed) “David Rae”_________ (signed) “Hume Kyle”

David Rae President and Chief Executive Officer

Hume Kyle Executive Vice President and Chief Financial Officer

February 17, 2022

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Independent auditor’s report

To the Shareholders of Dundee Precious Metals Inc.

Our opinion

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of Dundee Precious Metals Inc. and its subsidiaries (together, the Company) as at December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (IFRS).

What we have audited

The Company’s consolidated financial statements comprise:

• the consolidated statements of financial position as at December 31, 2021 and 2020;

• the consolidated statements of earnings (loss) for the years then ended;

• the consolidated statements of comprehensive income (loss) for the years then ended;

• the consolidated statements of cash flows for the years then ended;

• the consolidated statements of changes in shareholders’ equity for the years then ended; and

• the notes to the consolidated financial statements, which include significant accounting policies and other explanatory information.

Basis for opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Canada. We have fulfilled our other ethical responsibilities in accordance with these requirements.

PricewaterhouseCoopers LLP PwC Tower, 18 York Street, Suite 2600, Toronto, Ontario, Canada M5J 0B2 T: +1 416 863 1133, F: +1 416 365 8215

“PwC” refers to PricewaterhouseCoopers LLP, an Ontario limited liability partnership.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter

Assessment of indicators of impairment or impairment reversal of property, plant and equipment related to the Tsumeb CGU

Refer to note 2.2 – Significant accounting policies and note 10 – Property, plant and equipment to the consolidated financial statements.

The Company’s property, plant and equipment (PP&E) net book value amounted to $335.3 million as at December 31, 2021, which includes a portion related to the Tsumeb Cash Generating Unit (CGU). Management assesses at each reporting date whether indicators of impairment or impairment reversal exist. If any indication of impairment or impairment reversal exists, an estimate of the CGU’s recoverable amount is calculated.

Management uses significant judgment in assessing whether indicators of impairment or impairment reversal exist that would necessitate impairment testing, including external and internal factors related to changes in forecasted toll rates, the foreign exchange rate, production volumes, capital and operating expenditures, and the discount rate.

How our audit addressed the key audit matter Our approach to addressing the matter included the following procedures, among others:

• Evaluated the reasonableness of management’s assessment of indicators of impairment or impairment reversal of the PP&E related to the Tsumeb CGU:

• Assessed the completeness of external and internal factors that could be considered as indicators of impairment or impairment reversal of the PP&E by considering evidence obtained in other areas of the audit.

• Assessed the external and internal factors related to changes in forecasted toll rates, the foreign exchange rate, production volumes and capital and operating expenditures by comparing to historical and current toll rates in tolling agreements, analyst consensus data and considering the current and past performance of the Tsumeb CGU.

• Professionals with specialized skill and knowledge in the field of valuation assisted us in assessing the reasonableness of the discount rate determined by management.

We considered this a key audit matter due to (i) the significant judgment by management in assessing whether indicators of impairment or impairment reversal exist that would necessitate impairment testing of the PP&E related to the Tsumeb CGU; (ii) the significant audit effort and subjectivity in performing procedures related to management’s assessment; and (iii) the assistance of professionals with specialized skill and knowledge in the field of valuation.

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Key audit matter

Recognition of the Tsumeb metal exposure adjustment

How our audit addressed the key audit matter Our approach to addressing the matter included the following procedures, among others:

Refer to note 2.2 – Significant accounting policies and note 5 – Accounts receivable to the consolidated financial statements.

As at December 31, 2021, the Company’s accounts receivable included a metal recovery of $2.2 million related to estimated metal exposure at Tsumeb.

Revenue from processing concentrate is adjusted for any over or under recoveries of metals delivered relative to contracted rates under the tolling agreement between Tsumeb and its customer. These metal exposure adjustments are calculated by comparing (i) the copper, gold and silver (together, metal) content in the concentrate received and processed by Tsumeb multiplied by the percentage payable in the agreement to (ii) the metal in the blister delivered to the customer and in the in-circuit material still being processed.

• Tested the operating effectiveness of controls relating to the metal exposure process, including management’s estimate of the metal exposure adjustment.

• Observed the metal stockpile survey performed near year-end.

• Obtained a customer confirmation in respect of the quantities of concentrate treated, blister returned and metal in-circuit at year-end.

• Tested how management estimated the Tsumeb metal exposure adjustment at year-end and evaluated the reasonableness of the estimated amount of metal contained in concentrate received, in-circuit material and blister delivered, where final assays have not been completed at year-end, by comparing to historical recovery rates and historical adjustments to provisional assays.

The metal exposure adjustment is subject to estimation, including the amount of metal contained in concentrate received, in-circuit material and blister delivered where final assays have not been completed.

We considered this a key audit matter due to (i) the significant judgment by management in estimating the Tsumeb metal exposure adjustment, including a high degree of estimation uncertainty and (ii) the significant audit effort and subjectivity in performing procedures related to management’s assumptions.

Other information

Management is responsible for the other information. The other information comprises the Management’s Discussion and Analysis, which we obtained prior to the date of this auditor’s report and the information, other than the consolidated financial statements and our auditor’s report thereon, included in the annual report, which is expected to be made available to us after that date.

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Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express an opinion or any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. When we read the information, other than the consolidated financial statements and our auditor’s report thereon, included in the annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company’s financial reporting process.

Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is Michael Hawtin.

/s/PricewaterhouseCoopers LLP

Chartered Professional Accountants, Licensed Public Accountants

Toronto, Ontario February 17, 2022

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As at December 31, 2021 and 2020 (in thousands of U.S. dollars)

		December 31,	December 31,
		2021	2020
ASSETS	Notes
Current Assets
Cash		334,377	149,532
Accounts receivable	5	128,338	84,920
Inventories	6	49,626	43,049
Other current assets	7(c),7(d)	1,452	10,818
		513,793	288,319
Assetsheldforsale	3	-	30,713
		513,793	319,032
Non-Current Assets
Investments at fair value	7(a),7(b)	47,983	106,595
Exploration and evaluation assets	8	98,925	-
Mine properties	9	138,037	155,438
Property, plant & equipment	10	335,305	364,337
Intangible assets	11	17,359	16,139
Deferred income tax assets	22	8,685	9,470
Other long-term assets		8,323	3,849
		654,617	655,828
TOTAL ASSETS		1,168,410	974,860
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities	12	77,170	72,234
Income tax liabilities	22	2,395	910
Current portion of long-term liabilities	16	6,234	5,929
		85,799	79,073
Liabilitiesheldforsale	3	-	6,003
		85,799	85,076
Non-Current Liabilities
Rehabilitation provisions	15	50,401	51,338
Share-based compensation plans	18	13,933	19,002
Other long-term liabilities	16	13,864	14,160
		78,198	84,500
TOTAL LIABILITIES		163,997	169,576
EQUITY
Share capital		585,050	525,219
Contributed surplus		8,629	7,078
Retained earnings		412,394	224,701
Accumulated other comprehensive income (loss)	26(c)	(1,660)	41,671
Equity attributable to common shareholders
of the Company		1,004,413	798,669
Non-controlling interests		-	6,615
TOTAL EQUITY		1,004,413	805,284
TOTAL LIABILITIES AND EQUITY		1,168,410	974,860

The accompanying notes are an integral part of the consolidated financial statements

Signed on behalf of the Board of Directors

(Signed) "David Rae" (Signed) "Anthony Walsh" David Rae, Director Anthony Walsh, Director

DUNDEE PRECIOUS METALS INC. | 1

CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) For the years ended December 31, 2021 and 2020

(in thousands of U.S. dollars, except per share amounts)

		2021	2020
	Notes
Continuing Operations
Revenue	29	641,443	609,558
Costs and expenses
Cost of sales	19	359,940	330,857
General and administrative expenses	19	18,161	30,604
Corporate social responsibility expenses		4,838	4,571
Exploration and evaluation expenses	19	18,006	19,072
Finance cost	20	5,549	7,022
Other(income) expense	21	5,531	(491)
		412,025	391,635
Earnings before income taxes		229,418	217,923
Current income tax expense	22	33,625	23,353
Deferredincome taxexpense (recovery)	22	5,064	(4,462)
Net earnings from continuing operations		190,729	199,032
Discontinued Operations
Net earnings (loss) from discontinued operations	3	19,095	(4,169)
**Net earnings **		209,824	194,863
Net earnings (loss) attributable to:
Common shareholders of the Company
From continuing operations		190,750	199,074
From discontinued operations		19,351	(3,072)
Non-controllinginterests		(277)	(1,139)
**Net earnings **		209,824	194,863
Earnings (loss) per share attributable to
common shareholders of the Company
- Basic
From continuing operations	23	1.02	1.10
From discontinued operations	23	0.10	(0.02)
- Diluted
From continuing operations	23	1.02	1.09
From discontinued operations	23	0.10	(0.02)

The accompanying notes are an integral part of the consolidated financial statements

DUNDEE PRECIOUS METALS INC. | 2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars)

	2021	2020
Net earnings	209,824	194,863
Other comprehensive income (loss) items that may be
reclassed subsequently to profit or loss:
Foreign exchange option contracts designated as
cash flow hedges
Unrealized gains (losses), net of income tax of $nil (2020 - $nil)	1,175	(114)
Deferred cost of hedging, net of income tax of $nil (2020 - $nil)	(2,504)	(947)
Realized (gains) losses transferred to cost of sales, net of
income tax of $nil (2020 - $nil)	(6,525)	3,486
Commodity swap contracts designated as
cash flow hedges
Unrealized gains (losses), net of income tax expense (recovery)
of $(1,525) (2020 - $9)	(13,723)	78
Deferred cost of hedging, net of income tax recovery
of $56 (2020 - $2)	(504)	(18)
Realized losses transferred to revenue, net of
income tax recovery of $1,516 (2020 - $nil)	13,645	-
Cost of hedging transferred to revenue, net of
income tax recovery of $58 (2020 - $nil)	522	-
Currency translation adjustments from discontinued operations	(908)	(3,395)
Other comprehensive income (loss) items that will not be
reclassified subsequently to profit or loss:
Unrealized gains (losses) on publicly traded securities, net of
income tax expense (recovery) of $(5,019) (2020-$5,019)	(37,593)	31,451
	(46,415)	30,541
Comprehensive income	163,409	225,404
Comprehensive income (loss) attributable to:
Common shareholders of the Company
From continuing operations	145,243	233,010
From discontinued operations	18,682	(5,445)
Non-controllinginterests	(516)	(2,161)
Comprehensive income	163,409	225,404

The accompanying notes are an integral part of the consolidated financial statements

DUNDEE PRECIOUS METALS INC. | 3

CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2021 and 2020

(in thousands of U.S. dollars)

		2021	2020
	Notes
OPERATING ACTIVITIES
Earnings before income taxes		229,418	217,923
Revenue transferred from deferred revenue	14	-	(46,674)
Depreciation and amortization		96,207	100,211
Changes in working capital	25(a)	(55,469)	(51,640)
Other Items not affecting cash	25(b)	26,209	14,422
Payments for settlement of derivative contracts		(14,082)	(9,103)
Income taxespaid		(29,157)	(28,174)
Cashprovided from operating activities of continuing operations		253,126	196,965
Cash provided from (used in) operating activities of
discontinued operations	3	(442)	101
INVESTING ACTIVITIES
Proceeds from MineRP Disposition	3	45,188	-
Cash payment for acquisition of INV, net of cash acquired	4	(1,569)	-
Purchase of publicly traded securities	7(b)	(8,307)	(5,119)
Proceeds from disposal of mine properties, property,
plant and equipment and intangible assets		263	124
Expenditures on exploration and evaluation assets		(10,100)	-
Expenditures on mine properties		(16,862)	(8,012)
Expenditures on property, plant and equipment		(33,648)	(25,447)
Expenditures on intangible assets		(3,538)	(4,097)
Increase in restricted cash	4	(3,500)	-
Cash used in investing activities of continuing operations		(32,073)	(42,551)
Cash used in investing activities of discontinued operations	3	-	(1,301)
FINANCING ACTIVITIES
Proceeds from share issuance		2,810	1,776
Repayments of credit facilities	13(a)	-	(10,000)
Lease obligations		(4,455)	(4,008)
Dividends paid	26(a)	(22,143)	(10,866)
Payments for share repurchases	26(b)	(10,207)	-
Interest and finance feespaid		(2,213)	(3,067)
Cash used in financing activities of continuing operations		(36,208)	(26,165)
Cash used in financing activities of discontinued operations		(140)	(375)
Increase in cash of continuing operations		184,845	128,249
Decrease in cash of discontinued operations		(582)	(1,575)
Cash at beginning of year, continuting operations		149,532	21,283
Cash at beginningofyear,discontinued operations		582	2,157
Cash at end of year, continuing operations		334,377	149,532
Cash at end ofyear, discountinued operations		-	582

The accompanying notes are an integral part of the consolidated financial statements

DUNDEE PRECIOUS METALS INC. | 4

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY For the years ended December 31, 2021 and 2020

(in thousands of U.S. dollars, except for number of shares)

	December 31, 2021 December 31,2020
	Number Amount Number Amount
Share Capital Authorized Unlimited common and preference shares with no par value Issued Fully paid common shares with one vote per share Balance at beginning of year Shares issued as part of an exploration option agreement Shares issued on exercise of stock options_(note 18) Shares issued on acquisition of INV(note 4) Share repurchases(note 26(b))_ Transferred from contributed surplus on exercise of stock options	181,400,125 525,219 180,537,053 522,351 - 25,000 153 1,070,774 2,810 838,072 1,776 10,664,501 60,844 - - (1,694,200) (5,269) - - 1,446 939
Balance at end ofyear	191,441,200 585,050 181,400,125 525,219
Contributed surplus Balance at beginning of year Share based compensation expense Transferred to share capital on exercise of stock options MineRP Disposition_(note 3) Stock options issued on acquisition of INV(note 4) Share repurchases(note 26(b))_ Other changes in contributed surplus	7,078 9,150 1,052 1,314 (1,446) (939) 4,741 - 2,366 - (5,141) - (21) (2,447)
Balance at end ofyear	8,629 7,078
Retained earnings Balance at beginning of year of the Company Dividend distributions_(note 26(a))_ Net earnings attributable to common shareholders	224,701 45,007 210,101 196,002 (22,408) (16,308)
Balance at end ofyear	412,394 224,701
Accumulated other comprehensive income (loss) (note 26(c)) Balance at beginning of year Other comprehensive income (loss) MineRP disposition_(note 3)_	41,671 10,108 (46,176) 31,563 2,845 -
Balance at end ofyear	(1,660) 41,671
Total equity attributable to common shareholders of the Company	1,004,413 798,669
Non-controlling interests Balance at beginning of year Net loss attributable to non-controlling interests Other comprehensive income (loss) attributable to non-controlling interests MineRP disposition_(note 3)_ Other changes in non-controllinginterests	6,615 6,278 (277) (1,139) (239) (1,022) (6,010) - (89) 2,498
Balance at end ofyear	- 6,615
Total equity at end ofyear	1,004,413 805,284

The accompanying notes are an integral part of the consolidated financial statements

DUNDEE PRECIOUS METALS INC. | 5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

1. CORPORATE INFORMATION

Dundee Precious Metals Inc. (“DPM”) is a Canadian based, international gold mining company engaged in the acquisition of mineral properties, exploration, development, mining and processing of precious metals. DPM is a publicly listed company incorporated under the federal laws of Canada. DPM has common shares traded on the Toronto Stock Exchange (“TSX”). The address of DPM’s registered office is 1 Adelaide Street East, Suite 500, P. O. Box 195, Toronto, Ontario, M5C 2V9.

As at December 31, 2021, DPM’s consolidated financial statements include DPM and its subsidiary companies (collectively, the “Company”).

Continuing operations:

DPM’s principal subsidiaries include:

• 100% of Dundee Precious Metals Chelopech EAD (“Chelopech”), which owns and operates a gold, copper and silver mine located east of Sofia, Bulgaria;

• 100% of Dundee Precious Metals Krumovgrad EAD (“Ada Tepe”), which owns and operates a gold mine located in south eastern Bulgaria, near the town of Krumovgrad; and

• 92% of Dundee Precious Metals Tsumeb (Proprietary) Limited (“Tsumeb”), which owns and operates a custom smelter located in Tsumeb, Namibia.

DPM holds interests, directly or indirectly, in a number of exploration properties located in Ecuador, Serbia and Canada including:

• 100% of DPM Ecuador S.A. (“DPM Ecuador”), formerly INV Minerales Ecuador S.A., which is focused on the exploration and development of the Loma Larga gold project located in Ecuador (note 4) ;

• 100% of DPM Avala d.o.o., formerly Avala Resources d.o.o., which is focused on the exploration and development of the Timok gold project in Serbia; and

• 8.9% of Sabina Gold and Silver Corp. (“Sabina”), which is focused on the development of the Back River project in southwestern Nunavut, Canada.

Discontinued operations (note 3) :

On May 3, 2021, DPM sold its 73.7% ownership interest in MineRP Holdings Inc. (“MineRP”), which owns MineRP Holdings (Proprietary) Limited, an independent mining software vendor with operations in Canada, South Africa, Australia and Chile.

2.1 BASIS OF PREPARATION

The Company’s consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board and Interpretations of the IFRS Interpretations Committee. These consolidated financial statements were approved by the Board of Directors on February 17, 2022.

2.2 SIGNIFICANT ACCOUNTING POLICIES

These consolidated financial statements have been prepared on a historical cost basis except for publicly traded securities and derivative assets and liabilities (note 7) that are measured at fair value.

The Company’s significant accounting policies are set out below. The Company has consistently applied these accounting policies to all periods presented in these consolidated financial statements.

DUNDEE PRECIOUS METALS INC. | 6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(a) Basis of consolidation

Subsidiaries are all entities over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The Company uses the acquisition method of accounting for business combinations. The fair value of the acquisition of a subsidiary is based on the fair value of the assets acquired and liabilities assumed, and the fair value of the consideration. The fair value of the assets acquired and liabilities assumed includes any contingent consideration arrangement. Acquisition related costs are expensed as incurred. At the date of acquisition, identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values. The Company also recognizes any non-controlling interest in the acquiree at fair value.

The excess, if any, of the consideration paid and the amount of any non-controlling interest recognized over the fair value of the identifiable net assets acquired is recorded as goodwill. In the case of a bargain purchase, where the total consideration paid and the non-controlling interest recognized are less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly in the consolidated statements of earnings (loss).

Subsidiaries are fully consolidated from the date on which control is acquired by the Company and they are deconsolidated from the date that control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company using consistent accounting policies. All inter-company balances, revenues and expenses and earnings and losses resulting from inter-company transactions are eliminated on consolidation.

Non-controlling interests in the net assets of consolidated subsidiaries are a separate component of the Company’s equity. Non-controlling interests consist of the non-controlling interests on the date of the original business combination plus the non-controlling interests’ share of changes in equity since the date of acquisition.

(b) Critical accounting estimates and judgments

The preparation of the Company’s consolidated financial statements in accordance with IFRS requires management to make judgments, estimates and assumptions that affect the amounts of assets, liabilities and contingent liabilities on the date of the consolidated financial statements and the amounts of revenues and expenses during the period reported. Estimates and assumptions are evaluated and are based on management’s experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual outcomes can differ from these estimates.

The significant areas of estimation and/or judgment considered by management in preparing the consolidated financial statements include, but are not limited to:

• commencement of commercial production (note 2.2(l)) ;

• Mineral Resource and Mineral Reserve estimates (note 2.2(l))

• impairment of non-financial assets (note 2.2(p)) ;

• rehabilitation provisions and contingencies (note 2.2(q)) ;

• revenue recognition related to toll smelting arrangements (note 2.2(t)) ; and

• deferred income tax assets and liabilities (note 2.2(x)) .

DUNDEE PRECIOUS METALS INC. | 7

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(c) Presentation and functional currency

The Company’s presentation currency is the U.S. dollar and the functional currency of DPM and its consolidated subsidiaries from continuing operations is the U.S. dollar as it was assessed by management as being the primary currency of the economic environment in which the Company operates.

(d) Foreign currency

Foreign currency transactions

Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at exchange rates on the reporting date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated at the exchange rates on the dates that their fair values are determined. Non-monetary assets and liabilities denominated in foreign currencies that are measured at historical cost are translated at the exchange rates on the dates of the transactions. Income and expense items are translated at the exchange rate on the dates of the transactions. Exchange gains or losses resulting from the translation of these amounts are included in net earnings (loss), except those arising on the translation of equity instruments that are fair valued through other comprehensive income (loss).

Foreign operations

Foreign operations are comprised of subsidiaries of the Company that have a functional currency other than the U.S. dollar. The assets and liabilities of foreign operations, including fair value adjustments arising on acquisition, are translated into U.S. dollars at exchange rates on the reporting date. The income and expenses of foreign operations are translated into U.S. dollars at exchange rates on the dates of the transactions. Foreign currency differences are recognized as currency translation adjustments in other comprehensive income (loss). Accumulated currency translation adjustments are reclassified to net earnings (loss) upon the disposal of the associated foreign operation when the gain or loss on disposal is recognized. Prior to the sale of MineRP in May 2021, MineRP was the only foreign operation of the Company with a functional currency being South African Rand (“ZAR”) and its subsidiaries with functional currencies denominated in the currencies of the primary economic environments in which each of the subsidiaries operated.

(e) Cash and cash equivalents

Cash and cash equivalents comprise cash deposits, guaranteed investment certificates and/or other highly rated and liquid securities with an original maturity of less than three months.

(f) Inventories

Inventories of ore and concentrates are measured and valued at the lower of average production cost and net realizable value. Net realizable value is the estimated selling price of the concentrates in the ordinary course of business based on the prevailing metal prices on the reporting date, less estimated costs to complete production and to bring the concentrates to sale. Production costs that are inventoried include the costs directly related to bringing the inventory to its current condition and location, such as materials, labour, other direct costs (including external services and depreciation, depletion and amortization), production related overheads and royalties.

Inventories of sulphuric acid, arsenic calcines, spare parts, supplies and other materials are valued at the lower of average cost and net realizable value. Obsolete, redundant and slow moving inventories are identified at each reporting date and written down to their net realizable values. Arsenic calcines not expected to be processed in the next 12 months are classified as long-term inventory and included in other long-term assets.

DUNDEE PRECIOUS METALS INC. | 8

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(g) Financial assets and liabilities excluding derivative instruments related to hedging activities

Financial assets

Initial recognition and measurement

Non-derivative financial assets are classified and measured as “financial assets at fair value”, as either through profit or loss (“FVPL”) or through other comprehensive income (“FVOCI”), and “financial assets at amortized cost”, as appropriate. The Company determines the classification of financial assets at the time of initial recognition based on the Company’s business model and the contractual terms of the cash flows.

All financial assets are recognized initially at fair value plus, in the case of financial assets not at FVPL, directly attributable transaction costs on the trade date at which the Company becomes a party to the contractual provisions of the instrument.

Financial assets with embedded derivatives are considered in their entirety when determining their classification at FVPL or at amortized cost. The Company has classified accounts receivable on provisionally priced sales as financial assets measured at FVPL. Other accounts receivable held for collection of contractual cash flows are measured at amortized cost.

Subsequent measurement – Financial assets at FVPL

Financial assets measured at FVPL include financial assets management intends to sell in the short term and any derivative financial instrument that is not designated as a hedging instrument in a hedge relationship. Financial assets measured at FVPL are carried at fair value in the consolidated statements of financial position with changes in fair value recognized in other (income) expense in the consolidated statements of earnings (loss). The Company’s investment in Sabina special warrants and its accounts receivable on provisionally priced sales are classified as financial assets at FVPL.

Subsequent measurement – Financial assets at FVOCI

Financial assets measured at FVOCI are non-derivative financial assets that are not held for trading and the Company has made an irrevocable election at the time of initial recognition to measure the assets at FVOCI. The Company’s investments in publicly traded equity securities are classified as financial assets at FVOCI.

After initial measurement, investments measured at FVOCI are subsequently measured at fair value with unrealized gains or losses recognized in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss).

Subsequent measurement – Financial assets at amortized cost

Financial assets measured at amortized cost are non-derivative financial assets that are held for collection of contractual cash flows, where those cash flows represent repayments of principal and interest. The Company’s other accounts receivable is classified as financial assets at amortized cost.

Dividends from all financial assets are recognized in other (income) expense in the consolidated statements of earnings (loss) when the right to receive the dividend is established.

Derecognition

A financial asset is derecognized when the contractual rights to the cash flows from the asset expire or are transferred, or the Company no longer retains substantially all the risks and rewards of ownership.

DUNDEE PRECIOUS METALS INC. | 9

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

On derecognition of a financial asset, the difference between the carrying amount measured at the date of derecognition and the consideration received is recognized in other (income) expense in the consolidated statements of earnings (loss) except for financial assets at FVOCI, for which the cumulative gain or loss remains in accumulated other comprehensive income (loss) and is not reclassified to profit or loss.

Impairment of financial assets

The Company’s only financial assets subject to impairment are other accounts receivable, which are measured at amortized cost. The Company has elected to apply the simplified approach to impairment as permitted by IFRS 9, Financial Instruments , which requires the expected lifetime loss to be recognized at the time of initial recognition of the receivable. To measure estimated credit losses, accounts receivable have been grouped based on shared credit risk characteristics, including the number of days past due. An impairment loss is reversed in subsequent periods if the amount of the expected loss decreases and the decrease can be objectively related to an event occurring after the initial impairment was recognized.

Financial liabilities

Recognition and measurement

Financial liabilities are measured at amortized cost, unless they are required to be measured at FVPL as is the case for held for trading or derivative instruments, or the Company has opted to measure the financial liability at FVPL. The Company’s financial liabilities include accounts payable and accrued liabilities and long-term debt, which are initially recognized at fair value and subsequently measured at amortized cost.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expires with any associated gain or loss recognized in other (income) expense in the consolidated statements of earnings (loss).

(h) Derivative financial instruments and hedging activities

Derivatives are initially recognized at fair value on the dates they are entered into and are subsequently remeasured at their fair value at the end of each reporting period. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.

For a derivative instrument to qualify for hedge accounting, the Company documents at the inception of the transaction the relationship between a hedging instrument and hedged item, as well as its risk management objectives and strategy for undertaking the hedging transaction. The Company also documents its assessment, both at inception and on an ongoing basis, of whether the derivative used to hedge an underlying exposure is highly effective in offsetting changes in the cash flows of the hedged item.

The full fair value of a hedging derivative is classified as a non-current asset or liability when the remaining maturity is more than 12 months.

Foreign exchange option contracts designated as cash flow hedges

The Company designates the intrinsic value of foreign exchange option contracts entered to hedge a portion of its projected operating expenses and capital expenditures denominated in foreign currencies as cash flow hedges.

DUNDEE PRECIOUS METALS INC. | 10

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The effective portion of changes in fair value of the intrinsic value of the options are initially recognized in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). For hedges of operating expenses, the accumulated fair value change initially recognized in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss) is subsequently recognized in cost of sales in the consolidated statements of earnings (loss) in the period when the underlying hedged operating expenses occur. For hedges of capital expenditures, the accumulated fair value change initially recognized in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss) is subsequently included in the carrying value of the underlying assets hedged in the period the underlying hedged capital expenditures occur.

The time value, which forms a component of these foreign exchange option contracts, is treated as a separate cost of hedging. As a result, any unrealized fair value change in the time value component of the outstanding foreign exchange option contracts is initially recognized as a deferred cost of hedging in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). The accumulated cost of hedging is subsequently recognized in cost of sales or included in the carrying value of the underlying assets hedged in the period the underlying hedged operating expenses or capital expenditures occur.

Commodity swap contracts designated as cash flow hedges

The Company also designates the spot component of commodity swap contracts to hedge future metal price exposures (“Production Hedges”) as cash flow hedges.

The effective portion of changes in fair value of the spot component of the swaps are initially recognized in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). The accumulated fair value change is subsequently recognized in revenue in the consolidated statements of earnings (loss) in the period the underlying hedged sales occur.

The forward points, or time value, which form a component of these commodity swap contracts, are treated as a separate cost of hedging. As a result, any unrealized fair value change in the time value component of the outstanding commodity swap contracts is initially recognized as a deferred cost of hedging in other comprehensive income (loss) in the consolidated statements of comprehensive income (loss). The accumulated cost of hedging is subsequently recognized in revenue in the period the underlying hedged sales occur.

Commodity swap contracts designated as fair value hedges

The Company designates the spot component of commodity swap contracts to hedge the metal price exposure associated with the time lag between the provisional and final determination of concentrate sales (“QP Hedges”) as a fair value hedge.

The effective portion of changes in fair value of the spot component of these commodity swap contracts are recognized in revenue in the consolidated statements of earnings (loss), together with any changes in the fair value of the hedged accounts receivable on the provisionally priced sales.

The forward point component of these commodity swap contracts is accounted for separately as a cost of hedging. As a result, any change in the fair value of the forward point component is recognized in revenue in the consolidated statements of earnings (loss).

DUNDEE PRECIOUS METALS INC. | 11

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets the criteria for cash flow hedge accounting, the accumulated deferred gains or losses remain in other comprehensive income (loss) until the period the underlying transaction that was hedged occurs at which point they are reclassified and recognized in revenue in the consolidated statements of earnings (loss). If the underlying hedged transaction is no longer expected to occur, the accumulated gains or losses that were initially recognized in other comprehensive income (loss) are immediately reclassified to other (income) expense in the consolidated statements of earnings (loss).

The gains or losses relating to the ineffective portion of all cash flow or fair value hedges, if any, are recognized immediately in other (income) expense in the consolidated statements of earnings (loss).

(i) Offsetting of financial instruments

Financial assets and financial liabilities are offset if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the assets and settle the liabilities simultaneously.

(j) Fair value of financial instruments

The fair value of financial instruments that are traded in active markets at each reporting date is determined by reference to quoted market prices or dealer price quotations (bid price for long positions and ask price for short positions), without any deduction for transaction costs.

For instruments not traded in an active market, the fair value is determined using appropriate valuation techniques. Such techniques may include using recent arm’s length transactions; reference to the current fair value of another instrument that is substantially the same; discounted cash flow analysis or other valuation models. These valuation models require the use of assumptions, including future stock price volatility and probability of exercise.

Changes in the underlying assumptions could materially impact the Company’s investments at FVPL. Further details on measurement of the fair values of financial instruments are provided in note 7 .

(k) Mineral exploration and evaluation expenditures

Exploration and evaluation activities involve the search for Mineral Resources and Mineral Reserves, the assessment of technical and operational feasibility and the determination of an identified Mineral Resource or Mineral Reserve’s commercial viability. Once the legal right to explore has been acquired, exploration and evaluation expenditures are expensed as incurred until economic production is probable. Exploration expenditures in areas where there is a reasonable expectation to convert existing estimated Mineral Resources to estimated Mineral Reserves or to add additional Mineral Resources with additional drilling and evaluations in areas near existing Mineral Resources or Mineral Reserves and existing or planned production facilities, are capitalized.

Exploration properties that contain Proven and Probable Mineral Reserves, but for which a development decision has not yet been made, are subject to periodic review for impairment when events or changes in circumstances indicate the project’s carrying value may not be recoverable.

Exploration and evaluation assets are reclassified to “Mine Properties – Mines under construction” when the technical feasibility and commercial viability of extracting the Mineral Resources or Mineral Reserves are demonstrable and construction has commenced or a decision to construct has been made. Exploration and evaluation assets are assessed for impairment before reclassification to “Mines under construction”, and the impairment charge, if any, is recognized through net earnings (loss).

DUNDEE PRECIOUS METALS INC. | 12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The application of the Company’s accounting policy for exploration and evaluation expenditures requires judgment in determining whether it is probable that future economic benefits will be generated from the exploitation of an exploration and evaluation asset when activities have not yet reached a stage where a reasonable assessment of the existence of Mineral Reserves can be determined. The estimation of Mineral Resources is a complex process and requires significant assumptions and estimates regarding economic and geological data and these assumptions and estimates impact the decision to either expense or capitalize exploration and evaluation expenditures. Management is required to make certain estimates and assumptions about future events and circumstances in order to determine if an economically viable extraction operation can be established. Any revision to any of these assumptions and estimates could result in the impairment of the capitalized exploration and evaluation costs. If new information becomes available after expenditures have been capitalized that the recovery of these expenditures is no longer probable, the expenditures capitalized are written down to the recoverable amount and charged to net earnings (loss) in the period the new information becomes available.

(l) Mine properties

Mine Properties – Mines under construction

All expenditures undertaken in the development, construction, installation and/or completion of mine production facilities are capitalized and initially classified as “Mines under construction”. All expenditures related to the construction of mine declines and orebody access, including mine shafts and ventilation raises, are considered to be capital development and are capitalized. Expenses incurred after reaching the orebody are regarded as operating development costs and are included in the cost of ore hoisted.

Upon the commencement of commercial production, all related assets included in “Mines under construction” are reclassified to “Mine Properties – Producing mines” or “Property, plant and equipment”. Determination of commencement of commercial production is a complex process and requires significant assumptions and estimates. The commencement of commercial production is defined as the date when the mine is capable of operating in the manner intended by management. The Company considers primarily the following factors, among others, when determining the commencement of commercial production:

• All major capital expenditures to achieve a consistent level of production and desired capacity have been incurred;

• A reasonable period of testing of the mine plant and equipment has been completed;

• A predetermined percentage of design capacity of the mine and mill has been reached; and

• Required production levels, grades and recoveries have been achieved.

Mine Properties – Producing mines

All assets reclassified from “Mines under construction” to “Producing mines” are stated at cost less accumulated depletion and accumulated impairment charges. Costs incurred for the acquisition of land are stated at cost.

The initial cost of a producing mine comprises its purchase price or construction cost, any costs directly attributable to bringing it to a working condition for its intended use, the initial estimate of the rehabilitation costs, and for qualifying assets, applicable borrowing costs during construction. The purchase price or construction cost is the aggregate amount of cash consideration paid and the fair value of any other consideration given to acquire the asset.

When a mine construction project moves into production, the capitalization of certain mine construction costs ceases, and from that point on, costs are either regarded as inventory costs or expensed as cost of sales, except for costs related to mine additions or improvements, mine development or mineable reserve development, which qualify for capitalization.

DUNDEE PRECIOUS METALS INC. | 13

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Depletion

The depletion of a producing mine asset is based on the unit-of-production method over the estimated economic life of the related deposit.

Mineral Resource and Mineral Reserve estimates

The estimation of Mineral Resources and Mineral Reserves, as defined under National Instrument 43-101, Standards of Disclosure for Mine Projects (“NI 43-101”), is a complex process and requires significant assumptions and estimates. The Company prepares its Mineral Resource and Mineral Reserve estimates based on information related to the geological data on the size, depth and shape of the orebody which is compiled by appropriately qualified persons. Mineral Resource and Mineral Reserve estimates are based upon factors such as metal prices, capital requirements, production costs, foreign exchange rates, geotechnical and geological assumptions and judgments made in estimating the size and grade of the orebody. Mineral Resource and Mineral Reserve estimates, together with forecast production, determine the life of mine estimates and therefore changes in the Mineral Resource or Mineral Reserve estimates may impact the carrying value of exploration and evaluation assets (note 2.2(k)) , mine properties, property, plant and equipment (note 2.2(m)), depletion and depreciation charges (note 2.2(m)), rehabilitation provisions (note 2.2(q)), and deferred income tax assets (note 2.2(x)).

(m) Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment charges.

The initial cost of property, plant and equipment comprises its purchase price or construction cost, any costs directly attributable to bringing it to a working condition for its intended use, the initial estimate of the rehabilitation costs, and for qualifying assets, applicable borrowing costs during construction. The purchase price or construction cost is the aggregate amount of cash consideration paid and the fair value of any other consideration given to acquire the asset. Where an item of property, plant and equipment is comprised of significant components with different useful lives, the components are accounted for as separate items of property, plant and equipment. The capitalized value of a lease is also included in property, plant and equipment.

Depreciation

The depreciation of property, plant and equipment related to a mine is based on the unit-of-production method over the estimated economic life of the related deposit, except in the case of an asset whose estimated useful life is less than the life of the deposit, in which case the asset is depreciated over its estimated useful life based on the straight-line method. For all other property, plant and equipment, depreciation is based on the estimated useful life of the asset on a straight-line basis. Depreciation of property, plant and equipment used in a capitalized exploration or development project is capitalized to the project.

Depreciation of property, plant and equipment, which are depreciated on a straight-line basis over their estimated useful lives, is as follows:

Depreciation of property, plant and equipment, which estimated useful lives, is as follows:	are depreciated on a straight-line basis over their
Asset Category	Estimated useful life (Years)
Buildings	15 - 20
Machinery and Equipment	3 - 20
Vehicles	5
Computer Hardware	3
Office Equipment	3-6

DUNDEE PRECIOUS METALS INC. | 14

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Construction work-in-progress includes property, plant and equipment in the course of construction and is carried at cost less any recognized impairment charge. These assets are reclassified to the appropriate category of property, plant and equipment and depreciation of these assets commences when they are completed and ready for their intended use.

An item of property, plant and equipment, including any significant part initially recognized, is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset, calculated as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in profit or loss when the asset is derecognized.

The residual values, useful lives and methods of depreciation of all assets are reviewed at each financial year end and are adjusted prospectively, if appropriate. Significant judgment is involved in the determination of estimated residual values and useful lives. The actual residual values and useful lives may differ from current estimates.

Depreciation of mine specific assets is based on the unit-of-production method. The life of these assets is assessed annually with regard to both their anticipated useful life and the present assessments of the economically recoverable reserves and resources of the mine property where these assets are located. These calculations require the use of estimates and assumptions, including the amount of recoverable reserves and resources. Any changes to these calculations based on new information are accounted for prospectively.

Rates of depreciation and, in turn, the annual depreciation expense could therefore be materially affected by changes in underlying estimates. Changes in estimates can be the result of differences in actual production or changes in forecast future production, changes in Mineral Resources or Mineral Reserves through exploration activities, differences between estimated and actual costs of mining and differences in metal prices used in the estimation of Mineral Reserves.

Major maintenance and repairs

Expenditures on major maintenance include the cost of replacing part of an asset and overhaul costs. When part of an asset is being replaced and it is probable that future economic benefits associated with the replacement or overhauled item will flow to the Company through an extended life, the expenditure is capitalized as a separate asset and the carrying amount of the replaced part is written off.

(n) Intangible assets

Intangible assets include software, exploration and software licenses, intellectual properties, customer relationships, long-term customer contracts and goodwill.

Intangible assets acquired are measured upon initial recognition at cost, which comprises the purchase price plus any costs directly attributable to the preparation of the asset for its intended use. Identifiable intangible assets acquired through business combinations are initially recognized at fair value as at the date of acquisition. Goodwill is initially measured as described in note 2.2(a) through business combinations.

Research expenditures are recognized as an expense as incurred. Development costs that are directly attributable to the design and testing of an identifiable software product are capitalized and recognized as an intangible asset.

Goodwill is carried at cost less any accumulated impairment losses and is not subject to amortization. All other intangible assets are carried at cost less accumulated amortization and any accumulated impairment charges. Other intangible assets are amortized on a straight-line basis over their estimated useful lives.

DUNDEE PRECIOUS METALS INC. | 15

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

The amortization periods applicable to intangible assets amortized on a straight-line basis over their estimated useful lives are as follows:

estimated useful lives are as follows:
Asset Category	Estimated useful life (Years)
Computer Software	3 - 5
Exploration and Software Licenses	3 - 5
Intellectual Property	10
Customer Relationships	15
Customer Contract	14

Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the intangible assets require the use of estimates and assumptions and are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense attributable to an intangible asset is recognized in the consolidated statements of earnings (loss) in the applicable expense category to which the intangible asset relates.

The gain or loss arising from the derecognition of an intangible asset is measured as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in profit or loss when the asset is derecognized.

(o) Assets and liabilities held for sale and discontinued operations

Non-current assets or assets in a disposal group that are expected to be recovered primarily through sale rather than through continuing use are classified as assets held for sale. A disposal group is a group of assets which the Company intends to dispose of in a single transaction. These assets are measured at the lower of their carrying amount and fair value less cost to sell. Impairment charges on initial classification as held for sale and subsequent gains or losses on re-measurement are recognized in net earnings (loss) from discontinued operations. The reversal of any previously recognized impairment charge cannot exceed the carrying amount that would have been determined had no impairment charge been recognized for the asset held for sale.

Assets and liabilities in a disposal group are classified as held for sale and are presented separately in the consolidated statements of financial position.

The measurement of assets held for sale requires the use of estimates and assumptions related to the carrying value and its recoverability through sale. Actual sale proceeds may differ materially from the carrying value.

A discontinued operation is a component of the Company that has been disposed of or is classified as held for sale and represents a separate line of business or geographical area of operations. The operating results and cash flows of discontinued operations are presented separately in the consolidated statements of earnings (loss) and cash flows.

DUNDEE PRECIOUS METALS INC. | 16

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(p) Impairment of non-financial assets

At each reporting date, the carrying values of mine properties, intangible assets and property, plant and equipment are assessed for impairment if indicators of potential impairment exist. If any indication of potential impairment exists, an estimate of the asset’s recoverable amount is calculated. The recoverable amount is determined as the higher of the fair value less costs of disposal (“FVLCD”) and its value in use based on discounted cash flows. This is determined on an asset-by-asset basis, unless the asset does not generate cash flows that are largely independent of those from other assets or groups of assets. If this is the case, individual assets are grouped together into a Cash Generating Unit (“CGU”) for impairment purposes. Such CGUs represent the lowest level for which there are separately identifiable cash inflows that are largely independent of the cash flows from other assets or groups of assets. Management has assessed the Company’s CGUs as being an individual operating site.

If the carrying amount of an asset or CGU exceeds its recoverable amount, the carrying amount of the asset or CGU is reduced to its recoverable amount with the corresponding impairment being charged to earnings (loss) in the period of impairment. Impairment charges are recognized in the consolidated statements of earnings (loss) in those expense categories consistent with the function of the impaired asset.

An assessment is also made at each reporting date as to whether there is any change in events or circumstances relating to a previously recognized impairment. If a change has occurred, the Company makes an estimate of the recoverable amount for the previously impaired asset or CGU. A previously recognized impairment charge, other than a charge in respect of goodwill, is reversed only if there has been a change in the estimates used to determine the asset or CGU’s recoverable amount since the last impairment charge was recognized. If this is the case, the carrying amount of the asset or CGU is increased to its newly determined recoverable amount. The increased amount cannot exceed the carrying amount that would have been determined, net of depreciation and amortization, had no impairment charge been recognized for the asset or CGU in prior years.

Goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate a potential impairment. For the purpose of impairment testing, goodwill is allocated to the CGU that is expected to benefit from the business combination in which the goodwill arose. Any impairment in goodwill is recognized immediately and cannot be subsequently reversed.

The assessment of impairment is based on a number of external and internal factors, some of which are outside of the Company’s control, and requires the use of estimates and assumptions related to these factors for each CGU. External factors include market considerations ranging from overall economic activity and the supply of and demand for the materials used in and products produced by the Company to changes in commodity prices, toll rates, discount rates, foreign exchange rates and regulatory requirements. Internal factors include considerations such as production volume, ability to convert resources into reserves, capital and operating expenditures, and future development and expansion plans.

These significant estimates and assumptions, some of which may be subjective, require that management make decisions based on the best available information at each reporting period. It is possible that the actual recoverable amount could be significantly different than those estimates. A significant decline in the asset’s market value, reductions in metal price forecasts, increases in estimated future costs of production, increases in estimated future capital costs, reductions in the amount of recoverable reserves, resources and exploration potential, and/or adverse market conditions can result in a write-down of the carrying amounts of the Company’s assets. Judgment is also required when considering whether significant changes in any of these items indicate a previous impairment may have reversed.

DUNDEE PRECIOUS METALS INC. | 17

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(q) Provisions and contingencies

General

Provisions are recognized when: a) the Company has a present obligation (legal or constructive) as a result of a past event; and b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation. Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement shall be recognized when it is virtually certain that reimbursement will be received if the Company settles the obligation. The reimbursement shall be treated as a separate asset. If the effect of the time value of money is material, provisions are discounted using a current pre-tax discount rate that reflects, where appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision as a result of the passage of time is recognized in finance cost in the consolidated statements of earnings (loss).

A contingent liability is not recognized in the case where no reliable estimate can be made; however, disclosure is required unless the possibility of an outflow of resources embodying economic benefits is remote. By its nature, a contingent liability will only be resolved when one or more future events occur or fail to occur. The assessment of a contingent liability inherently involves the exercise of significant judgment and estimates of the outcome of future events.

Rehabilitation provisions

Mining, processing, development and exploration activities are subject to various laws and regulations governing the protection of the environment. The Company recognizes a liability for its rehabilitation obligations in the period when a legal and/or constructive obligation is identified. The liability is measured at the present value of the estimated costs required to rehabilitate operating locations based on the risk free nominal discount rates that are specific to the countries in which the operations are located. A corresponding increase to the carrying amount of the related asset is recorded and depreciated in the same manner as the related asset.

The nature of these restoration and rehabilitation activities includes: i) dismantling and removing structures; ii) rehabilitating mines and tailing dams; iii) dismantling operating facilities; iv) closure of plant and waste sites; and v) restoration, reclamation and re-vegetation of affected areas. Other environmental costs incurred at the operating sites, such as environmental monitoring, water management and waste management costs, are charged to profit or loss when incurred.

The liability is accreted over time to its expected future settlement value. The accretion expense is recognized in finance cost in the consolidated statements of earnings (loss).

The Company assesses its rehabilitation provisions at each reporting date. The rehabilitation liability and related assets are adjusted at each reporting date for changes in the discount rates and in the estimated amount, timing and cost of the work to be carried out. Any reduction in the rehabilitation liability and therefore any deduction in the related rehabilitation asset may not exceed the carrying amount of that asset. If it does, any excess over the carrying value is immediately credited to profit or loss.

Significant estimates and assumptions are made by management in determining the nature and costs associated with the rehabilitation liability. The estimates and assumptions required include estimates of the timing, extent and costs of rehabilitation activities, technology changes, regulatory changes, and changes in the discount and inflation rates. These uncertainties may result in future expenditures being different from the amounts currently provided.

DUNDEE PRECIOUS METALS INC. | 18

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(r) Leases

The determination of whether an arrangement is, or contains, a lease is based on the substance of the agreement on the inception date.

As a lessee, the Company recognizes a lease obligation and a right-of-use asset in the consolidated statements of financial position on a present-value basis at the date when the leased asset is available for use. Each lease payment is apportioned between a finance charge and a reduction of the lease obligation. Finance charges are recognized in finance cost in the consolidated statements of earnings (loss). The rightof-use asset is included in property, plant and equipment and is depreciated over the shorter of its estimated useful life and the lease term on a straight-line basis.

Lease obligations are initially measured at the net present value of the following lease payments:

• fixed payments (including in-substance fixed payments), less any lease incentives receivable;

• variable lease payment that are based on an index or a rate;

• amounts expected to be payable under residual value guarantees;

• the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and

• payments of penalties for terminating the lease, if the lease term reflects the Company exercising that option.

Lease payments are discounted using the interest rate implicit in the lease, or if this rate cannot be determined, the Company’s incremental borrowing rate.

Right-of-use assets are initially measured at cost comprising the following:

• the amount of the initial measurement of the lease obligation;

• any lease payments made at or before the commencement date less any lease incentives received;  any initial direct costs; and

• rehabilitation costs.

Payments associated with short-term leases and leases of low-value assets are recognized on a straightline basis as an expense in the consolidated statements of earnings (loss). Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise primarily small equipment.

(s)

Share capital

Common shares issued by DPM are classified as equity. Costs directly attributable to the issuance of new shares are recognized in equity as a deduction from the share proceeds. Costs to repurchase and cancel the Company’s shares are recognized as a reduction in share capital to the extent of its book value and the excess of the purchase price over the book value is recognized as a reduction in contributed surplus in the consolidated statements of changes in shareholders’ equity.

(t) Revenue recognition

Revenue from the sale of concentrates containing gold, copper and silver is recognized when control has been transferred, which is considered to occur when products have been delivered and the significant risks of loss have been transferred to the buyer. Revenue is measured based on the consideration specified in the contract.

DUNDEE PRECIOUS METALS INC. | 19

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Revenue from the sale of concentrates is initially recorded based on a provisional value which is a function of prevailing market prices, estimated weights and grades less smelter and other commercial deductions. Under the terms of the concentrate sales contracts, the final metal price ("settlement price") for the payable metal is based on a predetermined quotational period of London Metal Exchange and London Bullion Market daily prices. The price of the concentrate is the sum of the metal payments less the sum of specified deductions, including treatment and refining charges, penalties for deleterious elements, and freight. The terms of these contracts result in embedded derivatives because of the timing difference between the prevailing metal prices for provisional payments and the actual contractual metal prices used for final settlement. These embedded derivatives are adjusted to fair value at the end of each reporting period through to the date of final price determination with any adjustments recognized in revenue.

Any adjustments to the amount receivable for each shipment on the settlement date, caused by final assay results, are adjusted through revenue at the time of determination.

Revenue from processing concentrate is recognized when concentrate has been smelted and is based on the toll rate specified in the toll agreement, which can vary based on the composition of the concentrate processed and prevailing market conditions at the time the agreement was entered. Under each toll agreement, Tsumeb incurs a carrying charge in respect of the concentrate it processes until blister copper is delivered. This charge is recorded as a reduction of revenue.

Revenue from processing concentrate is also adjusted for any over or under recoveries of metals delivered relative to contracted rates under the tolling agreement between Tsumeb and IXM S.A. (“IXM”). These adjustments represent metal exposure and are calculated by comparing (i) the copper, gold and silver content in the concentrate received and processed by Tsumeb multiplied by the percentage accountable in the IXM contract to (ii) the accountable copper, gold and silver in the blister delivered to IXM and in the incircuit material still being processed by Tsumeb. Many aspects of the metal exposure are subject to estimation, including the amount of metal contained in concentrate received, in-circuit material and blister delivered where final assays have not been completed. These significant estimates are based on the Company’s process knowledge, joint surveys with IXM and multiple assay results, the final results of which could differ from initial estimates.

Revenue from the sale of sulphuric acid, a by-product from processing concentrate at the Tsumeb smelter, is measured at the price specified in the sales contract and is recognized when the control has been transferred, which is considered to occur when the products have been delivered to the location specified in the sales contract and the risk of loss has been transferred to the buyer.

Revenue from MineRP’s software services is recognized over time when the services are rendered. This is measured based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. The estimated revenue or extent of progress toward percentage of completion is revised if changes occur or circumstances arise that indicate a revision is warranted. Any resulting increase or decrease in estimated revenue is reflected in the consolidated statements of earnings (loss) in the period in which such determination is made.

Revenue from licenses entered by MineRP containing software and ongoing services elements is recognized based on the estimated fair value of each element. The fair value of each element is determined based on the market price of each element when sold separately. Revenue relating to the software element is recognized when the control has been transferred to the customer, which occurs on delivery. Revenue relating to the service element is recognized over time when the services are rendered.

DUNDEE PRECIOUS METALS INC. | 20

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(u) Deferred revenue

Deferred revenue is recognized in the consolidated statements of financial position when a cash prepayment is received from one or more customers prior to the sale of product or delivery of service. Revenue is subsequently recognized in the consolidated statements of earnings (loss) when the sale occurs, which generally occurs when control has been transferred or in the case of services, when the services have been rendered.

The Company recognizes the time value of money, where there is a significant financing component and the period between the payment by the customer and the transfer of the contracted goods or services exceeds one year.

(v) Borrowing costs

Borrowing costs directly related to the acquisition and the construction of a qualifying capital asset are capitalized and added to the cost of the asset until such time as the asset is considered substantially ready for its intended use. Where funds are borrowed specifically to finance a project, the amount capitalized represents the actual borrowing costs incurred. Where funds used to finance a project form part of general borrowings, the amount capitalized is calculated using the weighted average cost applicable to relevant general borrowings of the Company during the period. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(w) Share-based compensation transactions

Equity-settled transactions

Stock options are granted to directors and selected employees to buy common shares of the Company. Options vest equally over a three-year period and expire five years from the date of grant. Grants of stock options are based on the closing price of the common shares on the TSX the day before the effective grant date and reflect the Company’s estimate of the number of awards that will ultimately vest. The stock options are measured on the date of grant by reference to the fair value determined using a Black-Scholes valuation model, further details of which are given in note 18 . The value is recognized as a general and administrative expense in the consolidated statements of earnings (loss) and an increase to contributed surplus in the consolidated statements of changes in shareholders’ equity over the period in which the performance and/or service conditions are fulfilled.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

DUNDEE PRECIOUS METALS INC. | 21

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Cash-settled transactions

A Director Deferred Share Unit (“Director DSU”) Plan and an Employee Deferred Share Unit (“Employee DSU”) Plan were established for directors and certain employees in lieu of cash compensation. The Director DSUs are paid in cash following separation of a director from the Company based on the closing price of DPM’s common shares on the applicable redemption date as elected by the director. The Employee DSUs are paid in cash based on (i) the five-day volume weighted average price (“Market Price”) of DPM’s common shares on the date the employee ceases to be employed by DPM or a subsidiary thereof (“Separation Date”); or (ii) if a deferred redemption date has been elected by the employee (“Deferred Redemption Date”), a cash payment by the Company to the employee based on the Market Price or the closing price of DPM’s common shares on the day preceding the Deferred Redemption Date; or (iii) the Market Price of DPM’s common shares if the Deferred Redemption Date is December 15 of the calendar year commencing after the Separation Date. The cost of the DSUs is measured initially at fair value based on the closing price of DPM’s common shares preceding the day the DSUs are granted. The cost of the DSUs is recognized as a liability under share based compensation plans in the consolidated statements of financial position and as a general and administrative expense in the consolidated statements of earnings (loss). The liability is remeasured to fair value based on the Market Price of DPM’s common shares at each reporting date up to and including the settlement date, with changes in fair value recognized in general and administrative expenses in the consolidated statements of earnings (loss).

A Restricted Share Unit (“RSU”) Plan was established for directors, certain employees and eligible contractors (“Participant”) of DPM and its wholly-owned subsidiaries in consideration of past services to the Company.

Under this plan, the Board of Directors may, at its sole discretion, (i) grant non-performance based RSUs and RSUs with a performance-based component, referred to as performance share units (“PSUs”), subject to performance conditions to be achieved by the Company; and (ii) determine the entitlement date or dates of such RSUs and PSUs. The non-performance based RSUs vest equally over a three-year period and are paid in cash based on the Market Price of DPM’s publicly traded common shares on the entitlement date or dates. The PSUs vest after three years from the grant date and are paid in cash based on the Market Price of DPM’s common shares, subject to performance criteria established by the Board of Directors on the entitlement date or dates.

The cost of the RSUs and PSUs is measured initially at fair value on the authorization date based on the closing price of DPM’s common shares preceding the day the RSUs and PSUs are granted. The cost of RSUs and PSUs is recognized as a liability under share based compensation plans, with the current portion recognized in accounts payable and accrued liabilities, in the consolidated statements of financial position and as an expense in the consolidated statements of earnings (loss) over the vesting period. The liability is remeasured to fair value based on the Market Price of DPM’s common shares and, in the case of PSUs, subject to performance criteria, at each reporting date up to and including the settlement date, with changes in fair value recognized in the consolidated statements of earnings (loss).

(x) Income taxes

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities on the taxable loss or income for the period. The tax rates and tax laws used to compute the amount are those enacted or substantively enacted by the end of the reporting period.

Current income tax assets and current income tax liabilities are only offset if a legally enforceable right exists to offset the amounts and the Company intends to settle on a net basis or to realize the asset and settle the liability simultaneously.

DUNDEE PRECIOUS METALS INC. | 22

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

2.2 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Deferred income tax

Deferred income tax is provided using the balance sheet method on temporary differences on the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Deferred income tax liabilities are recognized for all taxable temporary differences. Deferred income tax assets are recognized for all deductible temporary differences, and the carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable income will be generated in future periods to utilize these deductible temporary differences.

The following temporary differences do not result in deferred income tax assets or liabilities:

• The initial recognition of assets or liabilities, not arising from a business combination, that does not affect accounting or taxable profit;

• Initial recognition of goodwill, if any; and

• Investments in subsidiaries, associates and jointly controlled entities where the timing of the reversal of temporary differences can be controlled and reversal in the foreseeable future is not probable.

The carrying amount of deferred income tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient future taxable income will be generated to allow all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at the end of each reporting period and are recognized to the extent that it has become probable that future taxable income will be generated to allow the deferred income tax asset to be recovered.

Deferred income tax assets and liabilities are measured at the tax rates that are expected to be in effect in the period when the asset is expected to be realized or the liability is expected to be settled, based on tax rates that have been enacted or substantively enacted by the end of the reporting period.

Deferred income tax assets and liabilities are offset if a legally enforceable right exists to offset current income tax assets against current income tax liabilities and the deferred income taxes relate to the same taxable entity and the same taxation authority.

Current and deferred income taxes related to items recognized directly in equity are recognized in equity and not in profit or loss. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Judgment is required in determining whether deferred income tax assets are recognized on the consolidated statements of financial position. Deferred income tax assets, including those arising from unutilized tax losses, require management to assess the likelihood that the Company will generate future taxable income in order to utilize the deferred income tax assets. Estimates of future taxable income are based on forecasted cash flows from operations or other activities and the application of existing tax laws in each jurisdiction. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred income tax assets recorded on the reporting date could be impacted.

Additionally, future changes in tax laws in the jurisdictions in which the Company operates could impact tax deductions in future periods and the value of its deferred income tax assets and liabilities.

DUNDEE PRECIOUS METALS INC. | 23

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

(y) Earnings per share

Basic earnings per share is computed by dividing the net earnings available to common shareholders by the weighted average number of shares outstanding during the reporting period.

Diluted earnings per share reflects the potential dilution that could occur if additional common shares are assumed to be issued under securities that entitle their holders to obtain common shares in the future. The number of additional shares for inclusion in diluted earnings per share is determined using the treasury stock method, whereby stock options and warrants, whose exercise price is less than the average market price of the Company’s common shares, are assumed to be exercised at the beginning of the period with proceeds based on the average market price for the period. The incremental number of common shares issued under stock options and warrants is included in the calculation of diluted earnings per share.

DUNDEE PRECIOUS METALS INC. | 24

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

3. ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS

On December 22, 2020, the Company and other shareholders of MineRP entered into a definitive agreement with Epiroc Canada Holding Inc., a subsidiary of Epiroc Rock Drills AB (“Epiroc”) for the sale of MineRP (the “MineRP Disposition”). The MineRP Disposition closed on May 3, 2021.

MineRP Disposition

Net cash consideration received for DPM's equity interest in MineRP:

Net cash consideration received for DPM's equity interest in MineRP:
Total purchase price	59,000
Cash received for settlement of DPM loan to MineRP	(20,571)
Working capital adjustment	(1,485)
Closing indebtedness	(534)
Closing cash	276
Cash consideration	36,686
Less:transactioncosts	(3,048)
Net cash consideration	33,638
Cashpaid tonon-controllinginterests	(9,021)
Net cash consideration received for DPM's equity interest in MineRP(a), (b)	24,617
Net assets disposed:
Cash	276
Accounts receivable	2,231
Property, plant & equipment	1,137
Intangible assets	26,760
Other long-termassets	230
Total assets disposed	30,634
Accounts payable and accrued liabilities	5,835
Loan payable to Epiroc	20,571
Current portion of long-term liabilities	311
Deferred income tax liabilities	950
Other long-term liabilities	630
Total liabilities disposed	28,297
Non-controlling interests	607
Net assets disposed	1,730
Reclassification of currency translation adjustments from
accumulated other comprehensive income	(2,845)
Gain on MineRP Disposition included in net earnings
from discontinued operations	20,042

(a) Net cash consideration received included $5.1 million held in escrow on closing to secure against any post closing adjustments related to working capital and certain representations and warranties, of which $1.6 million related to working capital items. The working capital adjustment was finalized in December 2021, resulting in an unfavourable final adjustment of $0.6 million to the Company which was recognized as a reduction in the gain on MineRP Disposition included in net earnings from discontinued operations for the year ended December 31, 2021. As at December 31, 2021, the remaining cash held in escrow of $3.5 million related to other indemnities was recognized as restricted cash included in other long-term assets in the consolidated financial statements of financial position.

DUNDEE PRECIOUS METALS INC. | 25

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

• (b) The MineRP Disposition also provides for potential additional proceeds in the form of an earn-out conditional on the achievement of certain revenue targets by MineRP in 2021 and 2022, for which no value has been recognized as at December 31, 2021 based on the assessment of its fair market value.

As a result of the MineRP Disposition, the assets and liabilities of MineRP have been presented as held for sale in the consolidated statement of financial position as at December 31, 2020, and the operating results and cash flows of MineRP have been presented as discontinued operations in the consolidated statements of earnings (loss) and cash flows for the years ended December 31, 2021 and 2020.

The following table summarizes the assets and liabilities of MineRP which have been aggregated and presented as held for sale as at December 31, 2020:

	December 31,
	2020
Cash	582
Accounts receivable	1,524
Property, plant & equipment	1,265
Intangible assets	27,153
Other long-term assets	189
Total assets held for sale	30,713
Accounts payable and accrued liabilities	4,038
Current portion of long-term liabilities	303
Deferred income tax liabilities	950
Other long-term liabilities	712
Total liabilities held for sale	6,003
Non-controlling interests of net assets held for sale	6,504

The following table summarizes the operating results of MineRP which have been aggregated and presented as discontinued operations for the years ended December 31, 2021 and 2020:

	2021	2020
Revenue	4,521	11,495
Costs and expenses
Cost of sales	3,726	10,160
General and administrative expenses	2,384	6,424
Other income	(631)	(485)
	5,479	16,099
Loss before income taxes	(958)	(4,604)
Current income tax expense	-	212
Deferred income tax recovery	(11)	(647)
Net loss from discontinued operations
before gain on MineRP Disposition	(947)	(4,169)
Gain on MineRP Disposition	20,042	-
Net earnings (loss) from discontinued operations	19,095	(4,169)

DUNDEE PRECIOUS METALS INC. | 26

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

4. ACQUISITION OF INV METALS INC. (“INV”)

On July 26, 2021, the Company acquired all of the issued and outstanding shares it did not already own of INV, now renamed DPM Ecuador Holdings Inc., which owns DPM Ecuador, the principal assets of which are comprised of the Loma Larga gold project and certain other exploration licenses. As consideration for the acquisition, DPM issued 10,664,501 common shares representing 0.0910 of a DPM common share for each INV common share acquired at a market price of $5.72 (Cdn$7.19) per share with an aggregate value of $61.0 million.

This transaction was accounted for as an asset acquisition with the consideration paid allocated primarily to the exploration and evaluation assets related to the Loma Larga project. The following table summarizes the consideration paid and the allocation of this consideration to the assets acquired and liabilities assumed as at the date of acquisition.

Consideration paid

Consideration paid
DPM common shares issued, net of share issuance costs	60,844
Fair value of previously held equity interest_(a)_	17,988
DPM stock options_(b)_	2,366
Transactioncosts	2,463
Total consideration paid	83,661
Assets acquired and liabilities assumed
Cash	1,029
Accounts receivable	556
Investments at fair value	151
Exploration and evaluation assets	86,372
Property, plant and equipment	589
Other long-term assets	897
Accounts payable and accrued liabilities	(4,677)
Current portion of long-term liabilities	(220)
Other long-term liabilities	(1,036)
Net assets acquired	83,661

• (a) The fair value of the 35,344,424 INV shares previously held by DPM (note 7(b)) was based on the market price of $0.51 (Cdn$0.64) per INV share as at the date of acquisition.

• (b) As at the date of acquisition, 12,304,700 outstanding INV stock options vested immediately and were exchanged for 1,119,728 DPM stock options, the fair value of which was estimated using the BlackScholes option pricing model.

The Company recognized a post-acquisition net loss of $0.6 million from DPM Ecuador in the consolidated statements of earnings (loss) for the year ended December 31, 2021. Had DPM Ecuador been consolidated from January 1, 2021, the Company would have reported a net loss of $8.6 million, including change of control payments as a result of the acquisition, in its consolidated statements of earnings (loss) for the year ended December 31, 2021.

DUNDEE PRECIOUS METALS INC. | 27

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

5. ACCOUNTS RECEIVABLE

5. ACCOUNTS RECEIVABLE
	December 31,	December 31,
	2021	2020
Accounts receivable_(a)_	116,699	74,506
Supplier advances and other prepaids	9,618	8,501
Value added tax receivable	2,021	1,913
	128,338	84,920

(a) As at December 31, 2021, the Company’s accounts receivable included a metal recovery of $2.2 million (December 31, 2020 – a liability of $0.4 million) related to estimated metal exposure at Tsumeb.

6. INVENTORIES

	December 31,	December 31,
	2021	2020
Ore and concentrates	18,012	14,382
Spare parts, supplies and other	31,614	28,667
	49,626	43,049

For the year ended December 31, 2021, the cost of inventories recognized as an expense and included in cost of sales was $209.5 million (2020 – $186.4 million).

7. FINANCIAL INSTRUMENTS

Set out below is a comparison, by category, of the carrying amounts of the Company’s financial instruments that are recognized in the consolidated statements of financial position:

		December 31,	December 31,
	Financial instrument	2021	2020
Financial assets
Cash	Amortized cost	334,377	149,532
Accounts receivable
on provisional priced sales	FVPL	85,083	52,957
Other accounts receivable	Amortized cost	43,255	31,963
Restricted cash	Amortized cost	5,730	2,111
Sabina special warrants_(a)_	FVPL	5,816	12,128
Publicly traded securities_(b)_	FVOCI	42,167	94,467
Commodity swap contracts_(c)_	Derivatives for cash flow and
	fair value hedges	21	104
Foreign exchange option
contracts (d)	Derivativesforcash flow hedges	-	6,364
Financial liabilities
Accounts payable
and accrued liabilities	Amortized cost	73,735	66,465
Commodity swap contracts_(c)_	Derivatives for cash flow and	1,946	5,769
	fair value hedges
Foreign exchange option
contracts (d)	Derivativesforcash flow hedges	1,489	-

DUNDEE PRECIOUS METALS INC. | 28

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

The carrying values of all the financial assets and liabilities approximate their fair values as at December 31, 2021 and 2020.

(a) Sabina special warrants

During the year ended December 31, 2021, the Company purchased an additional 512,820 common shares of Sabina at an average price of $1.56 (Cdn$1.95) per share. As at December 31, 2021, DPM held: (i) 31,050,566 common shares of Sabina; and (ii) 5,000,000 Series B special warrants, which will be automatically exercised upon a positive production decision with respect to the Back River project or upon the occurrence of certain other events. Each of the special warrants is exercisable into one common share until 2044.

The fair value of the special warrants was based on the fair value of the Sabina common shares, which was determined based on the closing bid prices as at December 31, 2021 and 2020.

The fair value of the Sabina special warrants was included in investments at fair value in the consolidated statements of financial position.

For the year ended December 31, 2021, the Company recognized unrealized losses on the Sabina special warrants of $6.3 million (2020 – unrealized gains of $5.7 million) in other (income) expense (note 21) in the consolidated statements of earnings (loss).

(b) Publicly traded securities

Publicly traded securities include a portfolio of equity investments in publicly traded mining and exploration companies, comprised primarily of Sabina. As a result of the Company acquiring 100% of INV on July 26, 2021, INV is no longer reported under investments at fair value (note 4) .

For the year ended December 31, 2021, the Company recognized unrealized losses on these publicly traded securities of $42.6 million (2020 – unrealized gains of $36.5 million) in other comprehensive income (loss) that will not be reclassified subsequently to profit or loss.

(c) Commodity swap contracts

The Company enters into QP Hedges, being cash settled commodity swap contracts from time to time to swap future contracted monthly average metal prices for fixed metal prices to eliminate or substantially reduce the metal price exposure associated with the time lag between the provisional and final determination of concentrate sales.

As at December 31, 2021, the Company’s outstanding QP Hedges, all of which mature within six months from the reporting date, are summarized in the table below:

		Weighted average fixed price
Commodity hedged	Volume hedged	of QP Hedges
Payable gold	18,040 ounces	1,803.46/ounce
Payable copper	6,194,982pounds	4.16/pound

The Company also enters into Production Hedges, being cash settled commodity swap contracts from time to time to swap future contracted monthly average prices for fixed metal prices to reduce its future metal price exposure in respect of its projected production. As at December 31, 2021, the Company had no outstanding Production Hedges.

The Company designates the spot component of commodity swap contracts in respect of Production Hedges as cash flow hedges and the spot component of commodity swap contracts in respect of QP Hedges as fair value hedges.

DUNDEE PRECIOUS METALS INC. | 29

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

The fair value gain or loss on commodity swap contracts is calculated based on the corresponding London Metal Exchange forward copper prices and New York Commodity Exchange forward gold and silver prices, as applicable. As at December 31, 2021, the net fair value loss on all outstanding commodity swap contracts was $1.9 million (December 31, 2020 – $5.7 million), of which $0.02 million (December 31, 2020 – $0.1 million) was included in other current assets and $1.9 million (December 31, 2020 – $5.8 million) in accounts payable and accrued liabilities.

All commodity swap contracts are subject to master netting agreements. As at December 31, 2021, there was no set-off of assets and liabilities in the consolidated statements of financial position. As at December 31, 2020, $0.1 million of commodity swap assets were set-off against commodity swap liabilities of $5.8 million in accounts payable and accrued liabilities.

For the year ended December 31, 2021, the Company recognized, in revenue, net losses of $3.5 million (2020 – $11.1 million) on commodity swap contracts in respect of QP Hedges and realized losses of $15.7 million (2020 – $nil) on commodity swap contracts in respect of Production Hedges.

(d) Foreign exchange option contracts

The Company enters into foreign exchange option contracts from time to time to reduce the foreign exchange exposure associated with projected operating expenses and capital expenditures denominated in foreign currencies.

Foreign exchange option contracts provide price protection below a specified “floor” rate and participation up to a specified “ceiling” rate. The option contracts comprise a series of call options and put options (which when combined create a price “collar”) that are structured so as to provide for a zero upfront cash cost.

As at December 31, 2021, the Company had outstanding foreign exchange option contracts in respect of a portion of its projected ZAR denominated operating expenses as summarized in the table below:

		Call options sold	Put options purchased
Year of projected	Amount hedged	Weighted average	Weighted average
operating expenses	in ZAR(i)	ceiling rate US$/ZAR	floor rate US$/ZAR
2022	1,464,090,000	17.05	15.14

(i) The Namibian dollar is pegged to the ZAR on a 1:1 basis.

The Company designates the intrinsic value of option contracts as cash flow hedges. The time value component of foreign exchange option contracts is treated as a separate cost of hedging.

The fair value gain or loss on these outstanding contracts is calculated based on foreign exchange forward rates quoted in the market. As at December 31, 2021, the net fair value loss on all outstanding foreign exchange option contracts was $1.5 million (December 31, 2020 – net fair value gain of $6.4 million), of which $nil was included in other current assets (December 31, 2020 – $6.4 million) and $1.5 million (December 31, 2020 – $nil) in accounts payable and accrued liabilities. All foreign exchange option contracts are subject to master netting agreements. As at December 31, 2021 and 2020, there was no setoff of assets and liabilities in the consolidated statements of financial position.

The Company recognized realized gains of $6.5 million (2020 – realized losses of $3.5 million) for the year ended December 31, 2021 in cost of sales on the spot component of settled contracts.

For the year ended December 31, 2021, the Company recognized unrealized losses of $5.4 million (2020 – unrealized gains of $3.4 million) in other comprehensive income (loss) on the spot component of the outstanding foreign exchange option contracts. For the year ended December 31, 2021, the Company also recognized unrealized losses of $2.5 million (2020 – $0.9 million) on the time value component of the outstanding foreign exchange option contracts in other comprehensive income (loss) as a deferred cost of hedging.

DUNDEE PRECIOUS METALS INC. | 30

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

Effects of hedge accounting

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged items (the Company’s accounts receivable on provisionally priced sales, projected payable metal production, and projected operating expenses and capital expenditures denominated in foreign currencies) and the hedging instruments (commodity swap contracts and foreign exchange forward and option contracts). The hedges are effective when the critical terms of the hedging instrument match with the critical terms of the hedged item.

Hedge ineffectiveness can arise from:

• Differences in the timing and/or amount of the cash flows of the hedged item and the hedging instrument; and

• Fair value movements related to counterparty credit risk, which impact the hedging instrument and the hedged item differently.

The Company’s hedging relationships are such that the ratio between the underlying hedged item and the hedging instrument is 1:1. To measure for potential hedge ineffectiveness, the Company compares change in the fair value of the hedging instrument to change in the fair value of the underlying hedged item.

Set out below is a summary of effects of hedge accounting on the Company’s consolidated statements of financial position by risk category for its fair value and cash flow hedges:

	2021 2020
Commodity swap contracts designated as fair value hedges(i) Carrying amount Assets included in other current assets Liabilities included in accounts payable and accrued liabilities Notional amount Changes in fair value used for measuring ineffectiveness Hedging instruments Hedgeditems	21 104 (1,946) (5,836)
	(1,925) (5,732) 58,281 135,513 (1,892) (5,666) 1,914 5,444
Commodity swap contracts designated as cash flow hedges Carrying amount Assets included in accounts payable and accrued liabilities Notional amount Changes in fair value used for measuring ineffectiveness Hedging instruments Hedgeditems	- 67 - 21,883 - 87 - (87)
Foreign exchange option contracts designated as cash flow hedges Carrying amount Assets included in other current assets Liability included in accounts payable and accrued liabilities Notional amount ZAR (in 000's) Changes in fair value used for measuring ineffectiveness Hedging instruments Hedged items	- 6,364 (1,489) - 1,464,090 1,426,200 - 5,350 - (5,350)

(i) The carrying value of the hedged item, comprised of accounts receivable on provisionally priced sales, as at December 31, 2021 was $85.1 million (December 31, 2020 – $53.0 million).

DUNDEE PRECIOUS METALS INC. | 31

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

See note 26(c) for the effects of hedge accounting on the consolidated statements of earnings (loss) and the consolidated statements of comprehensive income (loss).

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

• Level 1: based on quoted (unadjusted) prices in active markets for identical assets or liabilities;  Level 2: based on inputs which have a significant effect on fair value that are observable, either directly or indirectly from market data; and

• Level 3: based on inputs which have a significant effect on fair value that are not observable from market data.

The following table illustrates the classification of the Company’s financial instruments within the fair value hierarchy as at December 31, 2021 and 2020:

			As at December	31, 2021
	Level 1	Level 2	Level 3	Total
Financial assets
Accounts receivable on provisionally
priced sales	-	85,083	-	85,083
Sabina special warrants	-	-	5,816	5,816
Publicly traded securities	42,167	-	-	42,167
Commodity swap contracts	-	21	-	21
Financial liabilities
Commodity swap contracts	-	1,946	-	1,946
Foreign exchange option contracts	-	1,489	-	1,489
			As at December	31, 2020
	Level 1	Level 2	Level3	Total
Financial assets
Accounts receivable on provisionally
priced sales	-	52,957	-	52,957
Sabina special warrants	-	-	12,128	12,128
Publicly traded securities	94,467	-	-	94,467
Commodity swap contracts	-	104	-	104
Foreign exchange option contracts	-	6,364	-	6,364
Financial liabilities
Commodity swap contracts	-	5,769	-	5,769

During the years ended December 31, 2021 and 2020, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers into or out of Level 3 fair value measurements.

The following table reconciles Level 3 fair value measurements from January 1, 2021 to December 31, 2021:

	December 31,	December 31,
	2021	2020
Balance at beginning of year	12,128	6,488
Unrealized gains (losses)includedin net earnings (note 21)	(6,312)	5,640
Balance at end ofyear	5,816	12,128

DUNDEE PRECIOUS METALS INC. | 32

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

8. EXPLORATION AND EVALUATION ASSETS

	December 31,
	2021
Balance at beginning of year	-
Additions_(a)_	12,444
Acquisition of INV_(note 4)_	86,372
Capitalized depreciation	109
Balance at end ofyear	98,925

• (a) In February 2021, the Company announced the results of a pre-feasibility study for its Timok gold project in Serbia. Based on the results of the PFS, the Board of Directors approved proceeding with a feasibility study (“FS”). As a result, $8.5 million costs related to the FS for the Timok gold project were capitalized to exploration and evaluation assets in the consolidated statements of financial position as at December 31, 2021.

Exploration and evaluation expenditures expensed directly to net earnings from continuing operations amounted to $18.0 million (2020 - $19.1 million) for the year ended December 31, 2021.

9. MINE PROPERTIES

	December 31,	December 31,
	2021	2020
Cost:
Balance at beginning of year	314,003	298,995
Additions	16,837	9,367
Capitalized depreciation	537	480
Changein rehabilitationprovisions	(1,115)	5,161
Balance at end of year	330,262	314,003
Accumulated depletion and impairment:
Balance at beginning of year	158,565	118,263
Depletion	33,660	40,302
Balance at end of year	192,225	158,565
Net book value:
At beginning of year	155,438	180,732
At end ofyear	138,037	155,438

The costs comprising mine properties related to producing mines. Of the total depletion expense, $31.0 million (2020 – $37.7 million) was charged to cost of sales for the year ended December 31, 2021.

DUNDEE PRECIOUS METALS INC. | 33

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

10. PROPERTY, PLANT AND EQUIPMENT

		Machinery	Construction
		and	Work-in-
	Buildings	Equipment	Progress	**Total **
Cost:
Balance as at January 1, 2020	73,994	547,061	21,611	642,666
Additions	2,727	17,757	14,129	34,613
Capitalized depreciation	-	-	510	510
Disposals	(373)	(4,774)	-	(5,147)
Change in rehabilitation provisions	3,919	198	-	4,117
Transfers	486	16,524	(17,010)	-
Reclassified as assetsheldforsale (note 3)	(1,240)	(476)	-	(1,716)
Balance as at December 31, 2020	79,513	576,290	19,240	675,043
Additions	3,106	16,406	15,971	35,483
Acquisition of INV_(note 4)_	263	326	-	589
Capitalized depreciation	-	-	802	802
Disposals	(1,506)	(3,274)	(305)	(5,085)
Impairment charge	(6)	(5,506)	-	(5,512)
Change in rehabilitation provisions	(609)	(1,262)	-	(1,871)
Transfers	167	12,058	(12,225)	-
Balance as at December 31, 2021	80,928	595,038	23,483	699,449
Accumulated depreciation and impairment:
Balance as at January 1, 2020	22,952	232,533	-	255,485
Depreciation expense	8,087	51,595	-	59,682
Capitalized depreciation	-	990	-	990
Currency translation adjustment	-	(135)	-	(135)
Depreciation relating to disposals	(248)	(4,617)	-	(4,865)
Reclassified as assetsheldforsale (note 3)	(405)	(46)	-	(451)
Balance as at December 31, 2020	30,386	280,320	-	310,706
Depreciation expense	7,635	53,958	-	61,593
Capitalized depreciation	48	1,382	-	1,430
Depreciation relating to disposals	(1,116)	(3,175)	-	(4,291)
Impairment charge	(3)	(5,291)	-	(5,294)
Balance as at December 31, 2021	36,950	327,194	-	364,144
Net book value:
As at December 31, 2020	49,127	295,970	19,240	364,337
As at December 31, 2021	43,978	267,844	23,483	335,305

Of the total depreciation expense from continuing operations, $61.3 million (2020 – $59.3 million) was charged to cost of sales and $0.6 million (2020 – $0.7 million) was charged to general and administrative expenses for the year ended December 31, 2021.

See note 17 for the carrying value of right-of-use assets under leases recognized in property, plant and equipment as at December 31, 2021 and 2020 and other related information for the years ended December 31, 2021 and 2020.

DUNDEE PRECIOUS METALS INC. | 34

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

11. INTANGIBLE ASSETS

==> picture [464 x 365] intentionally omitted <==

----- Start of picture text -----

Other
Goodwill Intangibles Total
Cost:
Balance as at January 1, 2020 22,513 32,667 55,180
Additions - 7,476 7,476
Currency translation adjustment (942) (84) (1,026)
-
Disposals (56) (56)
Reclassified as assets held for sale
(note 3) (21,571) (7,889) (29,460)
-
Balance as at December 31, 2020 32,114 32,114
Additions - 4,609 4,609
Disposals - (697) (697)
Balance as at December 31, 2021 - 36,026 36,026
Accumulated amortization and impairment:
-
Balance as at January 1, 2020 15,146 15,146
Amortization - 3,192 3,192
-
Amortization relating to disposals (56) (56)
Reclassified as assets held for sale
(note 3) - (2,307) (2,307)
-
Balance as at December 31, 2020 15,975 15,975
Amortization - 3,370 3,370
Captalized depreciation - 17 17
Amortization relating to disposals - (695) (695)
Balance as at December 31, 2021 - 18,667 18,667
Net book value:
-
As at December 31, 2020 16,139 16,139
As at December 31, 2021 - 17,359 17,359
----- End of picture text -----

Of the total intangible asset amortization expense from continuing operations, $2.4 million (2020 – $2.2 million) was charged to cost of sales and $1.0 million (2020 – $0.3 million) was charged to general and administrative expenses for the year ended December 31, 2021.

12. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

	December 31,	December 31,
	2021	2020
Accounts payable	20,380	13,110
Accrued liabilities	43,982	45,704
Commodity swap contracts_(note 7(c))_	1,946	5,769
Foreign exchange option contracts_(note 7(d))_	1,489	-
Dividend payable_(note 26(a))_	5,743	5,442
Value added taxpayable	3,630	2,209
	77,170	72,234

DUNDEE PRECIOUS METALS INC. | 35

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

13. DEBT

(a) DPM Revolving Credit Facility (“RCF”)

DPM has a committed RCF of $150.0 million with a consortium of banks. In February 2021, the Company extended the RCF’s maturity date from February 2023 to February 2024. The Company’s borrowing spread above LIBOR is 2.5%, and can range between 2.5% and 3.5% depending upon the Company’s funded net debt to adjusted earnings before interest, taxes, depreciation and amortization (“Debt Leverage Ratio”), as defined in the RCF agreement. The RCF is secured by pledges of the Company’s investments in Ada Tepe, Chelopech and Tsumeb and by guarantees from each of these subsidiaries.

The RCF contains financial covenants that require DPM to maintain: (i) a Debt Leverage Ratio below 3.75:1, (ii) a current ratio (including the addition of any unutilized credit within tranche B to current assets) of greater than 1.5:1, and (iii) a minimum net worth of $500.0 million plus (minus) 50% of ongoing annual net earnings (loss).

As at December 31, 2021 and 2020, DPM was in compliance with all financial covenants and $nil was drawn under the RCF.

(b) Tsumeb overdraft facility

Tsumeb has a Namibian $100.0 million ($6.3 million) demand overdraft facility. This facility is guaranteed by DPM and bears interest at a rate equal to the Namibian Prime Lending Rate minus 0.5%. As at December 31, 2021 and 2020, $nil was drawn from this facility.

(c) Other credit agreements and guarantees

In February 2021, Chelopech and Ada Tepe increased its multi-purpose credit facility from $16.0 million to $21.0 million. This credit facility matures on November 30, 2022 and is guaranteed by DPM. As at December 31, 2021, $13.9 million (December 31, 2020 – $6.1 million) had been utilized in the form of letters of credit and letters of guarantee, primarily in respect of concession contracts with the Bulgarian Ministry of Energy.

Chelopech and Ada Tepe also have a Euro 21.0 million ($23.8 million) credit facility to support mine closure and rehabilitation obligations in respect of concession contracts with the Bulgarian Ministry of Energy. This credit facility matures on November 30, 2022 and is guaranteed by DPM. As at December 31, 2021, $23.8 million (December 31, 2020 – $25.8 million) had been utilized in the form of letters of guarantee.

In February 2021, Ada Tepe increased its multi-purpose credit facility from $5.3 million to $10.3 million. This credit facility matures on November 30, 2022 and is guaranteed by DPM. As at December 31, 2021, $0.2 million (December 31, 2020 – $0.2 million) had been utilized in the form of letters of credit and letters of guarantee, primarily in respect of concession contracts with the Bulgarian Ministry of Energy.

Advances under these facilities bear interest at a rate equal to the one month U.S. Dollar LIBOR plus 2.5%. The letters of credit and guarantee bear a fee of 0.6% based on the amounts issued.

DUNDEE PRECIOUS METALS INC. | 36

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

14. DEFERRED REVENUE

In September 2016, the Company entered into a prepaid forward gold sales arrangement with several of DPM’s existing lenders whereby the Company undertook to deliver specified quantities of gold on specified dates in exchange for an upfront cash prepayment of $50.0 million. Deliveries in the form of unallocated gold credits sourced from the Company’s existing mines occurred over a 15-month period from October 2019 to December 2020.

The cash prepayment of $50.0 million, together with a total deemed financing expense of $13.2 million, was recorded as deferred revenue in the consolidated statements of financial position, which was subsequently recognized as revenue when deliveries were made under the prepaid forward gold sales arrangement.

During the year ended December 31, 2020, 34,087 ounces of gold were delivered pursuant to the prepaid forward gold sales arrangement and as a result, $46.7 million was transferred from deferred revenue to revenue. As at December 31, 2020, the deferred revenue had been fully recognized as revenue.

15. REHABILITATION PROVISIONS

The rehabilitation provisions represent the present value of rehabilitation costs relating to the Chelopech, Tsumeb and Ada Tepe sites, which are expected to be incurred between 2022 and 2049.

Key assumptions used in determining the rehabilitation provisions were as follows:

	December 31,	December 31,
	2021	2020
Discount period
Chelopech	2022 - 2043	2021 - 2037
Tsumeb	2022 - 2049	2022 - 2049
Ada Tepe	2022 - 2038	2021 - 2040
Local discount rate
Chelopech/Ada Tepe	1.3%	0.9%
Tsumeb	11.1%	11.4%
Local inflation rate
Chelopech/Ada Tepe	2.5%	2.5%
Tsumeb	4.5%	4.5%

Changes to rehabilitation provisions were as follows:

	Chelopech	Tsumeb	Ada Tepe	Total
Balance as at January 1, 2020	16,416	18,927	6,052	41,395
Change in cost estimate_(a)_	2,352	1,950	3,436	7,738
Remeasurement of provisions_(b)_	4,185	(4,842)	1,854	1,197
Accretion expense_(note 20)_	317	1,758	121	2,196
Balance as at December 31, 2020	23,270	17,793	11,463	52,526
Change in cost estimate	834	-	-	834
Remeasurement of provisions_(b)_	(1,702)	(980)	(1,432)	(4,114)
Accretionexpense (note 20)	256	1,999	125	2,380
Balance as at December 31, 2021	22,658	18,812	10,156	51,626

DUNDEE PRECIOUS METALS INC. | 37

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

• (a) During the year ended December 31, 2020, Tsumeb and Ada Tepe increased their estimated rehabilitation costs based on their current activities, updated closure plan and existing closure obligations.

• (b) Remeasurement of provisions resulted from changes in discount rates, inflation rates and foreign exchange rates at each site.

16. OTHER LONG-TERM LIABILITIES

	December 31,	December 31,
	2021	2020
Leases_(note 17)_	15,188	17,083
Other liabilities	4,910	3,006
	20,098	20,089
Less:Current portion	(6,234)	(5,929)
	13,864	14,160

17. LEASES

The Company leases various property, equipment and vehicles with lease terms ranging between one to 15 years. Extension and termination options are included in a number of property and equipment leases across the Company. These terms are used to maximize operational flexibility in terms of managing contracts, the majority of which are exercisable jointly by both the Company and the respective lessor. Lease terms are negotiated on an individual basis and contain a wide range of terms and conditions. Some of the Company’s leased assets are pledged as security for the related lease obligations.

Tsumeb has a long-term lease agreement for the supply of oxygen. The original term of the lease was 15 years extending to 2025, payable on a monthly basis. The lease payments were discounted at a rate of 12.5%.

Right-of-use assets recognized in property, plant and equipment (note 10) as at December 31, 2021 and 2020 were as follows:

2020 were as follows:
	December 31,	December 31,
	2021	2020
Buildings	3,741	2,431
Machineryand Equipment	7,024	14,287
	10,765	16,718

Additions to the right-of-use assets during the year ended December 31, 2021 were $2.9 million (2020 – $5.3 million).

Lease obligations related to right-of-use assets recognized in the current portion of long-term liabilities and other long-term liabilities (note 16) as at December 31, 2021 and 2020 we re as follows:

	December 31,	December 31,
	2021	2020
Current portion of long-term liabilities	4,405	4,137
Other long-term liabilities	10,783	12,946
	15,188	17,083

DUNDEE PRECIOUS METALS INC. | 38

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

Expenses related to leases recognized in the consolidated statements of earnings (loss) for the year ended December 31, 2021 and 2020 were as follows:

December 31, 2021 and 2020 were as follows:
	2021	2020
Depreciation charge of right-of-use assets
Buildings	870	848
Machinery andEquipment	3,954	3,593
	4,824	4,441
Finance charges_(note 20)_	1,163	1,227
Expense relating to short-term leases	494	572
Expense relating to leases of low-value assets
that are not short-term leases	59	64
Expense relating to variable lease payments
not included in lease obligations	1,194	184

Total cash outflows for leases for the year ended December 31, 2021 were $5.5 million (2020 – $5.3 million).

18. SHARE-BASED COMPENSATION PLANS

RSU plan

DPM has an RSU Plan for directors, certain employees and eligible contractors of DPM and its wholly-owned subsidiaries in consideration of past services to the Company. The Board of Directors administers this plan and determines the grants.

(a) Non-performance based RSUs

These RSUs vest equally over a three-year period and are paid in cash based on the Market Price of DPM’s publicly traded common shares on the entitlement date or dates, which should not be later than December 31 of the year that is three years after the year of service for which the RSUs are granted, as determined by the Board of Directors in its sole discretion.

The following is a summary of the RSUs granted for the years indicated:

	Number of RSUs	Amount
Balance as at January 1, 2020	2,697,627	7,173
RSUs granted	1,115,800	5,424
RSUs redeemed	(1,300,789)	(4,095)
RSUs forfeited	(232,044)	(393)
Mark-to-market adjustments		1,664
Balance as at December 31, 2020	2,280,594	9,773
RSUs granted	726,258	3,869
RSUs redeemed	**(1,199,532) **	(7,700)
RSUs forfeited	**(82,749) **	(89)
Mark-to-market adjustments		433
Balance as at December 31, 2021	1,724,571	6,286

As at December 31, 2021, there was $3.1 million (December 31, 2020 – $2.9 million) of RSU expenses remaining to be charged to net earnings in future periods relating to the RSU plan. (b) PSUs

DUNDEE PRECIOUS METALS INC. | 39

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

Under the RSU Plan, the Board of Directors may, at its sole discretion, (i) grant RSUs with a performancebased component, referred to as PSUs, subject to performance conditions to be achieved by the Company, and (ii) determine the entitlement date or dates of such PSUs. These PSUs vest after three years and are paid in cash based on the Market Price of DPM’s publicly traded common shares, subject to established performance criteria, on the entitlement date or dates, which shall not be later than December 31 of the year that is three years after the year of service for which the PSUs were granted, as determined by the Board of Directors in its sole discretion.

The following is a summary of the PSUs granted for the years indicated:

	Number of PSUs	Amount
Balance as at January 1, 2020	1,540,223	5,350
PSUs granted	371,454	2,023
PSUs redeemed	(588,850)	(2,842)
PSUs forfeited	(70,737)	(191)
Mark-to-market adjustments		2,872
Balance as at December 31, 2020	1,252,090	7,212
PSUs granted	240,928	1,403
PSUs redeemed	**(511,316) **	(5,599)
Mark-to-market adjustments		471
Balance as at December 31, 2021	981,702	3,487

As at December 31, 2021, there was $1.7 million (December 31, 2020 – $1.6 million) of expenses remaining to be charged to net earnings in future periods relating to these PSUs.

DSU plans

DPM has a DSU Plan for directors and certain employees.

Under the Director DSU Plan, directors receive a portion of their annual compensation in the form of DSUs. The DSUs are redeemable in cash equal to the closing price of DPM’s common shares on the applicable redemption date as elected by the director.

Under the Employee DSU Plan, grants to employees of the Company are determined by the Board of Directors, or the Human Capital & Compensation Committee, in lieu of a cash bonus. The DSUs are redeemable in cash based on (i) the Market Price of DPM’s common shares on the Separation Date; or (ii) the Market Price or the closing price of DPM’s common share on the day preceding the Deferred Redemption Date; or (iii) the Market Price of DPM’s common shares if the Deferred Redemption Date is December 15 of the calendar year commencing after the Separation Date.

The following is a continuity of the DSUs for the years indicated:

	Number of DSUs	Amount
Balance as at January 1, 2020	1,716,616	7,493
DSUs granted	152,642	844
Mark-to-market adjustments		5,141
Balance as at December 31, 2020	1,869,258	13,478
DSUs granted	179,883	1,093
DSUs redeemed	(297,007)	(2,078)
Mark-to-market adjustments		(1,876)
Balance as at December 31, 2021	1,752,134	10,617

DUNDEE PRECIOUS METALS INC. | 40

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

DPM stock option plan

The Company has established an incentive stock option plan for the directors, selected employees and consultants. Pursuant to the plan, the exercise price of the option cannot be less than the market price of DPM’s common shares on the trading date preceding the effective date of the option grant. The aggregate number of shares that can be issued from treasury under this plan is 12,500,000. Options granted vest equally over a three-year period and expire five years from the date of grant.

During the year ended December 31, 2021, the Company granted 464,443 (2020 – 680,860) stock options with a fair value of $1.1 million (2020 – $1.0 million). The estimated value of the options granted will be recognized as an expense in the consolidated statements of earnings (loss) and an addition to contributed surplus in the consolidated statements of changes in shareholders’ equity over the vesting period. The Company recorded stock option expenses of $1.1 million (2020 – $0.9 million) for the year ended December 31, 2021 under this stock option plan.

As at December 31, 2021, there was $0.7 million (December 31, 2020 – $0.7 million) of expenses remaining to be charged to net earnings in future periods relating to these options.

The fair value of options granted was estimated using the Black-Scholes option pricing model. The expected volatility is estimated based on the historic average share price volatility. The inputs used in the measurement of the fair values at the time the options were granted were as follows:

	2021	2020
Five year risk free interest rate	0.8% - 0.9%	0.4% - 0.6%
Expected life in years	4.75	4.75
Expected volatility	52.6% - 54.6%	57.6% - 60.5%
Dividendsper share	$0.12	$0.08

The following is a stock option continuity for the years indicated:

		Weighted average
	Number of	exercise price per share
	options	(Cdn$)
Balance as at January 1, 2020	3,145,565	3.13
Options granted	680,860	4.56
Options exercised	(838,072)	2.85
Options forfeited	(63,266)	4.24
Options expired	(9,000)	2.97
Balance as at December 31, 2020	2,916,087	3.52
Options granted	464,443	7.67
INV options_(note 4)_	1,119,728	6.74
Option exercised	(1,070,774)	3.27
Options expired	(34,139)	10.11
Balance as at December 31, 2021	3,395,345	5.17

DUNDEE PRECIOUS METALS INC. | 41

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

The following lists the options outstanding and exercisable as at December 31, 2021:

		Options	outstanding	Options	exercisable
			Weighted		Weighted
			average		average
Range of		Weighted	exercise		exercise
exercise prices	Number of	average	price	Number of	price
per share	options	remaining	per share	options	per share
(Cdn$)	outstanding	years	(Cdn$)	exercisable	(Cdn$)
2.69 - 3.28	922,537	0.74	3.07	922,537	3.07
3.29 - 4.45	1,394,946	2.20	4.42	775,742	4.41
4.46 - 8.50	790,484	2.77	6.86	304,292	5.62
8.51 - 10.99	287,378	0.30	10.92	287,378	10.92
2.69 - 10.99	3,395,345	1.78	5.17	2,289,949	4.85

19. EXPENSES BY NATURE

The operating costs, including cost of sales, general and administrative expenses, and exploration and evaluation expenses, as reported in the consolidated statements of earnings (loss), have been regrouped by the nature of the expenses as follows:

by the nature of the expenses as follows:
	2021	2020
Raw materials, consumables and spare parts	104,648	82,554
Staff costs	85,467	75,736
Service costs	70,917	63,426
Share-based compensation expense	4,156	18,184
Royalties	21,468	15,856
Drilling, assaying and other exploration and evaluation expenses	11,095	13,057
Insurance	4,855	3,834
Net (gains) losses on foreign exchange option contracts_(note 7(d))_	(6,525)	3,486
Depletion of mine properties_(note 9)_	30,960	37,704
Depreciation of property, plant and equipment_(note 10)_	61,877	59,973
Amortization of intangible assets_(note 11)_	3,370	2,534
Othercosts	3,819	4,189
Total operating costs	396,107	380,533

20. FINANCE COST

	2021	2020
Borrowing costs	2,006	2,306
Deemed interest on prepaid forward gold sales arrangement_(note 14)_	-	1,293
Accretion expense related to rehabilitation provisions_(note 15)_	2,380	2,196
Finance charges under leases (note 17)	1,163	1,227
	5,549	7,022

DUNDEE PRECIOUS METALS INC. | 42

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

21. OTHER (INCOME) EXPENSE

	2021	2020
Net (gains) losses on Sabina special warrants_(note 7(a))_	6,312	(5,640)
Net foreign exchange losses	1,628	4,376
Interest income	(632)	(194)
Other(income) expense	(1,777)	967
	5,531	(491)

22. INCOME TAXES

The major components of income tax expense recognized in net earnings (loss) from continuing operations are as follows:

	2021	2020
Current income tax expense on earnings	33,625	23,353
Deferred income tax expense (recovery) related to
origination and reversal of temporarydifferences	5,064	(4,462)
Income tax expense	38,689	18,891

The reconciliation of the combined Canadian federal and provincial government statutory income tax rates to the effective tax rate is as follows:

	2021	2020
Earnings before income taxes from continuing operations	229,418	217,923
Combined Canadian federal and provincial
statutoryincome tax rates	26.5%	26.5%
Expected income tax expense	60,796	57,750
Lower rates on foreign earnings	(41,163)	(39,256)
Changes in unrecognized tax benefits	14,842	2,906
Non-taxable portion of capital (gains) losses	3,346	(3,663)
Non-deductible share-based compensation expense	279	246
Other,net	589	908
Income tax expense	38,689	18,891

A deferred income tax recovery of $8.2 million (2020 – a deferred income tax expense of $5.0 million) relating to publicly traded securities and cash flow hedges was also recognized in other comprehensive income (loss) for the year ended December 31, 2021 .

DUNDEE PRECIOUS METALS INC. | 43

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

The significant components of the Company’s deferred income taxes as at December 31, 2021 and 2020 are as follows:

are as follows:
		December 31,	December 31,
		2021	2020
Deferred income tax assets
Non-capital losses		72,565	64,117
Capital losses		3,354	3,313
Cumulative Canadian exploration and evaluation expenses		2,308	2,555
Depreciable property, plant and equipment		8,897	9,215
Financing costs		2,345	3,193
Share-based compensation expense		3,541	5,035
Rehabilitation provisions		2,754	2,861
Investments		1,360	-
Other		1,055	1,363
Gross deferred income tax assets		98,179	91,652
Unrecognized taxbenefits		(88,724)	(74,156)
Total deferred income tax assets	~~0~~	9,455	17,496
Deferred income tax liabilities
Depreciable property, plant and equipment		649	315
Investments		-	5,982
Other		121	1,729
Total deferred income tax liabilities		770	8,026
Net deferred income tax assets		8,685	9,470

As at December 31, 2021, the Company had $8.7 million (December 31, 2020 – $9.5 million) of net deferred income tax assets and $nil (December 31, 2020 – $nil) of net deferred income tax liabilities after offsetting deferred income tax assets and liabilities incurred by the same legal entities in the same jurisdictions in its consolidated statements of financial position.

Of the total deferred income tax assets recognized in 2021, $8.6 million (2020 – $16.3 million) is expected to be recovered after more than 12 months. Of the total deferred income tax liabilities recognized in 2021, $0.6 million (2020 – $7.5 million) is expected to be payable after more than 12 months.

As at December 31, 2021, the Company had Canadian non-capital losses of $255.3 million (December 31, 2020 – $199.6 million) expiring between 2026 and 2041 and Serbian non-capital losses of $31.8 million (December 31, 2020 – $26.7 million) expiring between 2022 and 2026 for which no deferred income tax assets had been recognized.

The Company is subject to assessments by various taxation authorities which may interpret tax legislation and tax filing positions differently than the Company. Such differences are provided for when it is probable that the Company’s filing position will not be upheld and the amount of the tax exposure can be reasonably estimated. As at December 31, 2021 and 2020, no provisions have been made in the consolidated financial statements for potential tax liabilities relating to such assessments and interpretations.

DUNDEE PRECIOUS METALS INC. | 44

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

23. EARNINGS (LOSS) PER SHARE

	2021	2020
Net earnings (loss) attributable to common shareholders
Net earnings from continuing operations	190,750	199,074
Net earnings (loss)fromdiscontinued operations	**19,351 **	(3,072)
Basic weighted average number of common shares	186,135,033	181,054,158
Effect ofstockoptions	1,342,045	1,319,213
Diluted weighted average number of common shares	187,477,078	182,373,371
Basic earnings (loss) per share
From continuing operations	1.02	1.10
Fromdiscontinued operations	0.10	(0.02)
Diluted earnings (loss) per share
From continuing operations	1.02	1.09
From discontinued operations	0.10	(0.02)

24. RELATED PARTY TRANSACTIONS

Key management remuneration

The Company’s related parties include its key management. Key management includes directors (executive and non-executive), the Chief Executive Officer (“CEO”) and the Executive Vice Presidents reporting directly to the CEO.

The remuneration of the key management of the Company recognized in the consolidated statements of earnings (loss) for the years ended December 31, 2021 and 2020 was as follows:

	2021	2020
Salaries, management bonuses and director fees	3,290	3,229
Other benefits	210	222
Share-based compensation	1,897	8,703
Total remuneration	5,397	12,154

Included in net loss from discontinued operations for the year ended December 31, 2020 were MineRP stock options of $0.4 million granted to the Company’s former CEO.

DUNDEE PRECIOUS METALS INC. | 45

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

25. SUPPLEMENTARY CASH FLOW INFORMATION

(a) Changes in working capital

(a) Changes in working capital
	2021	2020
Increase in accounts receivable and other assets	(42,190)	(49,867)
Increase in inventories	(5,103)	(3,134)
Decrease in accounts payable and accrued liabilities	(1,714)	(2,444)
Increase (decrease)inother liabilities	(6,462)	3,805
	(55,469)	(51,640)

(b) Other items not affecting cash

(b) Other items not affecting cash
	2021	2020
Net finance cost	4,917	6,828
Share-based compensation expense	1,052	929
Net (gains) losses on Sabina special warrants	6,312	(5,640)
Net losses on commodity swap contracts	19,289	10,533
Net (gains) losses on foreign exchange option contracts	(6,525)	3,486
Other,net	1,164	(1,714)
	26,209	14,422

26. SUPPLEMENTARY SHAREHOLDERS’ EQUITY INFORMATION

(a) Dividend

During the year ended December 31, 2021, the Company declared a quarterly dividend of $0.03 per common share to its shareholders of record, resulting in total dividend distributions of $22.4 million (2020 – $16.3 million) recognized against its retained earnings in the consolidated statements of changes in shareholders’ equity. The Company paid an aggregate of $22.1 million (2020 – $10.9 million) of dividends which were included in cash used in financing activities in the consolidated statements of cash flows for the year ended December 31, 2021 and recognized a dividend payable of $5.7 million (December 31, 2020 – $5.4 million) in accounts payable and accrued liabilities in the consolidated statements of financial position as at December 31, 2021.

On February 17, 2022, the Company declared a dividend of $0.04 per common share payable on April 18, 2022 to shareholders of record on March 31, 2022, representing a 33% increase over the previous quarterly dividend.

(b) Share repurchases under the Normal Course Issuer Bid (“NCIB”)

Effective March 2, 2021, DPM renewed its NCIB to repurchase certain of its common shares through the facility of the TSX. The number of shares that can be purchased during the period of the NCIB will not exceed 9,000,000 shares. The NCIB will expire on February 28, 2022. In December 2021, the Company initiated an automatic purchase program under the NCIB to facilitate share repurchases.

During the year ended December 31, 2021, the Company purchased a total of 1,723,800 shares, of which 1,694,200 shares were cancelled as at December 31, 2021 with the remaining shares cancelled in January 2022. The total cost of these purchases was $10.4 million at an average price of $6.02 (Cdn$7.64) per share, $5.3 million of which was recognized as a reduction in share capital and $5.1 million as a reduction in contributed surplus in the consolidated statements of changes in shareholders’ equity for the year ended December 31, 2021. The Company paid an aggregate of $10.2 million which was included in cash used in financing activities in the consolidated statements of cash flows for the year ended December 31, 2021 and recognized an obligation of $0.2 million in accounts payable and accrued liabilities in the consolidated statements of financial position as at December 31, 2021.

DUNDEE PRECIOUS METALS INC. | 46

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

(c) Changes in accumulated other comprehensive income (loss)

(c) Changes in accumulated other comprehensive income (loss)
	2021	2020
Cash flow hedge reserves
Foreign exchange option contracts
Balance at beginning of year	5,344	1,972
Unrealized gains (losses), net of income taxes	1,175	(114)
Realized (gains) losses transferred to cost of sales,
net of income taxes	(6,525)	3,486
Balance at end ofyear	(6)	5,344
Commodity swap contracts
Balance at beginning of year	78	-
Unrealized gains (losses), net of income taxes	(13,723)	78
Realized losses transferred to revenue, net of income taxes	13,645	-
Balance at end ofyear	-	78
Deferred cost of hedging reserves
Foreign exchange option contracts
Balance at beginning of year	1,060	2,007
Deferred cost of hedging, net of income taxes	(2,504)	(947)
Balance at end ofyear	(1,444)	1,060
Commodity swap contracts
Balance at beginning of year	(18)	-
Deferred cost of hedging, net of income taxes	(504)	(18)
Cost of hedging transferred to revenue, net of income taxes	522	-
Balance at end ofyear	-	(18)
Unrealized gains on publicly traded securities
Balance at beginning of year	39,829	8,378
Unrealized gains (losses), net of income taxes	(37,593)	31,451
Balance at end ofyear	2,236	39,829
Accumulated currency translation adjustments
Balance at beginning of year	(2,446)	(2,249)
Currency translation adjustments	-	(2,373)
Reclassified as held for sale	-	2,176
Balance at end ofyear	(2,446)	(2,446)
Accumulated currency translation adjustments
related to assets and liabilities held for sale
Balance at beginning of year	(2,176)	-
Classified as held for sale	(669)	(2,176)
MineRP disposition_(note 3)_	2,845	-
Balance at end of year	-	(2,176)
Accumulated other comprehensive income (loss)	(1,660)	41,671

DUNDEE PRECIOUS METALS INC. | 47

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

27. COMMITMENTS AND CONTINGENCIES

(a) Commitments

The Company had the following minimum contractual commitments as at December 31, 2021:

	up to 1year	1 -5 years	Total
Capital commitments	9,209	-	9,209
Purchase commitments	18,985	49	19,034
Total commitments	28,194	49	28,243

As at December 31, 2021, Tsumeb had approximately $73.8 million (December 31, 2020 – $76.9 million) of recoverable third party in-process secondary materials, which it is obligated to process and return, generally in the form of blister, to IXM, pursuant to a tolling agreement (the “Tolling Agreement”).

In April 2021, the Company and IXM agreed to amend the existing Tolling Agreement to provide for, among other things: i) targeted declining excess secondary material balances, above which excess secondary material would be required to be purchased by the Company; ii) the elimination of all excess secondary material by March 31, 2023; iii) an increase in the defined level of normal secondary material; and iv) an extension of the Tolling Agreement by three years to December 31, 2026.

As at December 31, 2021, the value of excess secondary materials, as defined in the Tolling Agreement, was approximately $36.5 million, which was approximately $21.9 million above the targeted levels under the Tolling Agreement. IXM has agreed to waive the quarterly requirement to purchase secondary materials above the targeted levels as at December 31, 2021.

(b) Contingencies

The Company is involved in legal proceedings, from time to time, arising in the ordinary course of its business. It is not expected that any material liability will arise from current legal proceedings or have a material adverse effect on the Company’s future business, operations or financial condition.

28. FINANCIAL RISK MANAGEMENT

The Company’s principal financial liabilities comprise accounts payable and accrued liabilities and longterm debt. The main purpose of these financial instruments is to assist with the management of the Company’s short term and long term cash flow requirements. The Company has various financial assets, such as cash and accounts receivable, which arise directly from its operations.

The main risks that could adversely affect the Company’s financial assets, liabilities or future cash flows are market risk (which includes commodity price risk, interest rate risk and foreign currency risk), liquidity risk and credit risk. Management reviews each of these risks and establishes policies for managing them as summarized below.

The following discussion also includes a sensitivity analysis that is intended to illustrate the sensitivity to changes in market variables on the Company’s financial instruments and the impact on net earnings (loss) and shareholders’ equity, where applicable. Financial instruments affected by market risk include cash, accounts receivable, investments at fair value, commodity swap contracts, foreign exchange option contracts, long-term debt, accounts payable and accrued liabilities. The sensitivity has been prepared using financial assets and liabilities held as at the reporting dates.

DUNDEE PRECIOUS METALS INC. | 48

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

The Company has established financial risk management policies to identify and analyze the risks of the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Financial risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees involved in financial risk management activities understand their roles and obligations.

Market risk

Market risk is the risk that the future cash flows or the fair value of a financial instrument will fluctuate because of changes in market prices. Market risk is comprised of three types of risks: commodity price risk, interest rate risk and foreign currency risk. The impact of each of these components is discussed below.

Commodity price risk

The Company is subject to price risk associated with fluctuations in the market prices for metals. The Company sells its products at prices that are effectively determined by reference to the traded prices on the London Metal Exchange and London Bullion Market. The prices of gold and copper are major factors influencing the Company’s business, results of operations and financial condition. The Company regularly enters into commodity swap contracts to reduce the price exposure associated with the time lag between the provisional and final determination of its concentrate sales. In addition, the Company periodically enters into commodity swap contracts to reduce the price exposure associated with projected payable copper production. The Company also selectively enters into commodity swap contracts to reduce its price exposure applicable to projected payable gold contained in Chelopech’s pyrite concentrate production.

The Company’s risk management policy, which was approved by the Board of Directors, requires provisional concentrate sales to be fully hedged and permits hedging up to 90%, 85% and 80% of its projected payable copper production in the subsequent 1, 2, and 3 year reporting periods, respectively.

As at December 31, 2021, the impact of a 5% increase or decrease in metal prices impacting the Company’s accounts receivable and outstanding commodity swap contracts, with all other variables held constant, would decrease or increase earnings before income taxes by $2.0 million (2020 – $3.8 million) and would decrease or increase equity by $2.0 million (2020 – $4.9 million).

The following table demonstrates the effect on 2021 and 2020 earnings before income taxes of a 5% increase in commodity prices on its sales, excluding the impact of any hedges and with all other variables held constant. The impact on equity is the same as the impact on net earnings.

Effect of a 5% increase in metal prices on earnings before income taxes

	2021	2020
Gold	25,129	23,146
Copper	6,883	4,580
Total increase on earnings before income taxes	32,012	27,726

The effect of a 5% decrease in metal prices, excluding the impact of any hedges and with all other variables held constant, would decrease earnings before income taxes by an equivalent amount.

Interest rate risk

Interest rate risk is the risk that the future cash flows or fair value of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s cash and floating rate denominated debt. As at December 31, 2021, the Company had no debt. For the year ended December 31, 2021, a 100 basis point increase or decrease in interest rates across the yield curve, with all other variables held constant, would increase or decrease earnings before income taxes by $3.4 million (2020 – $1.5 million). The impact on equity is the same as the impact on net earnings.

DUNDEE PRECIOUS METALS INC. | 49

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

Foreign currency risk

The Company’s foreign currency exposures arise primarily from a significant portion of its operating and capital costs being denominated in currencies other than the U.S. dollar, the Company’s functional currency. The Company periodically undertakes to purchase, in advance, a portion of its foreign denominated cash flow requirements on a spot or forward basis to reduce this exposure. The Company also enters into foreign exchange option contracts in order to reduce the foreign exchange exposure associated with projected operating expenses and capital expenditures denominated in foreign currencies.

The Company’s risk management policy, which was approved by the Board of Directors, permits up to 85%, 80% and 75% of its projected operating expenses denominated in foreign currency to be hedged in the subsequent 1, 2, and 3 year reporting periods, respectively. The policy also permits projected capital expenditures denominated in foreign currency to be fully hedged.

For the year ended December 31, 2021, a 5% appreciation of the U.S. dollar relative to the ZAR on the Company’s outstanding foreign exchange option contracts, with all other variables held constant, would decrease equity by $1.9 million (2020 – $6.9 million). The effect of a 5% depreciation of the U.S. dollar relative to ZAR on the Company’s outstanding foreign exchange option contracts, with all other variables held constant, would be to increase equity by equivalent amounts.

The following table demonstrates the effect on 2021 and 2020 earnings before income taxes and equity of a 5% appreciation of the U.S. dollar relative to the Company’s key foreign currencies on the Company’s outstanding financial assets and liabilities denominated in foreign currencies, excluding the impact of any hedges and with all other variables held constant.

Effect of a 5% appreciation of the U.S. dollar on

	Effect of a 5% appreciation of the U.S. dollar on
	2021 2020 2021 2020 Earnings before income taxes Equity
Euro Namibian Dollar Canadian Dollar	1,731 2,120 1,521 1,919 (353) (74) (353) (74) (773) (771) 1,335 3,952
Total increase	605 1,275 2,504 5,797

The effect of a 5% depreciation of the U.S. dollar relative to these foreign currencies on the Company’s outstanding foreign denominated financial assets and liabilities, excluding the impact of any hedges and with all other variables held constant, would be to decrease earnings before income taxes and equity by equivalent amounts.

Credit risk

The exposure to credit risk arises through the potential failure of a customer or another third party to meet its contractual obligations to the Company. During 2021, the Company had contracts with 14 customers in connection with its mining and smelting operations, one of whom accounted for approximately 40% (2020 – 57%) of the Company’s revenue. Under the terms of the Company’s concentrate sales contracts, the purchasers make an initial advance payment equal to 70% to 95% of the provisional value of each lot at the time title transfers. This serves to mitigate a portion of the Company’s credit risk.

With respect to credit risk arising from the other financial assets of the Company, which comprise cash, equity investments and derivative financial assets, the Company’s maximum exposure is equal to the carrying amount of these instruments. The Company limits its counterparty credit risk on these assets by dealing with highly rated counterparties, issuers that are subject to minimum credit ratings, and/or maximum prescribed exposures.

DUNDEE PRECIOUS METALS INC. | 50

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

Liquidity risk

The Company relies on the cash flows generated from its operations, including provisional payments received from its customers, retained cash balances, available lines of credit under its RCF and its ability to raise debt and equity from the capital markets to fund its operating, investment and liquidity needs. The cyclical nature of the Company’s businesses and the volatility of capital markets are such that conditions could change dramatically, affecting the Company’s cash flow generating capability, its ability to maintain, or draw upon, its RCF or the existing terms under its concentrate sales and/or smelting agreements, as well as its liquidity, cost of capital and its ability to access new capital, which could adversely affect the Company’s earnings and cash flows and, in turn, could affect total shareholder returns. To reduce these risks, the Company: (i) prepares regular cash flow forecasts to monitor its capital requirements, available liquidity and compliance to debt covenants; (ii) strives to maintain a prudent capital structure that is comprised primarily of equity financing and long-term debt, currently in the form of a committed RCF; and (iii) targets a minimum level of liquidity comprised of surplus cash balances and/or undrawn committed lines of credit to avoid having to raise additional capital at times when the costs or terms would be regarded as unfavourable.

The table below summarizes the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

undiscounted payments.
			**As at December **	31, 2021
	up to 1year	**1 -5 years **	over 5 years	Total
Accounts payable and accrued liabilities	73,735	-	-	73,735
Commodity swap contracts	1,946	-	-	1,946
Foreign exchange option contracts	1,489	-	-	1,489
Lease obligations	5,407	10,305	1,791	17,503
Otherobligations	700	840	125	1,665
	83,277	11,145	1,916	96,338
			As atDecember	31,2020
	up to1year	1 -5 years	over5 years	Total
Accounts payable and accrued liabilities	66,465	-	-	66,465
Commodity swap contracts	5,769	-	-	5,769
Lease obligations	5,350	14,000	871	20,221
Otherobligations	648	510	58	1,216
	78,232	14,510	929	93,671

Capital management

The Company’s objective for capital management is to: (i) maintain sufficient levels of liquidity to fund and support its exploration, evaluation, development and operating activities; (ii) maintain a strong financial position to ensure it has ready access to debt and equity markets to supplement its existing cash balance and free cash flow being used to fund its growth activities; and (iii) comply with all financial covenants set out in its credit agreements and guarantees. See note 13 for discussion on the Company’s compliance with these requirements. The Company monitors its financial position and the potential impact of adverse market conditions on an ongoing basis. The Company manages its capital structure and makes adjustments to it based on prevailing market conditions and according to its business strategy. The Company's long term funding strategy is to maintain a capital structure comprised primarily of equity sourced from equity offerings and net earnings generated from its businesses and, as a result, the targeted level of debt making up the Company’s capital base is relatively low. Given the long term nature of the assets being funded and the U.S. dollar denominated revenue stream generated therefrom, the Company’s general strategy around any debt financing is to raise long-term U.S. dollar denominated debt to supplement these equity financings.

DUNDEE PRECIOUS METALS INC. | 51

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

Overall financial leverage is monitored based upon a number of non-financial and financial factors, including a number of credit related ratios contained in DPM’s loan agreements and net debt (defined as total debt less cash and cash equivalents) as a percentage of total capital (defined as total equity plus net debt). As of December 31, 2021, the Company was in compliance with all loan covenants and its net debt as a percentage of total capital was negative 50% (December 31, 2020 – negative 23%).

Financial Risk Management in response to Coronavirus (“COVID-19”)

In March 2020, the World Health Organization classified the COVID-19 epidemic as a worldwide pandemic and governments across the globe undertook extensive measures to combat the spread of this virus. To date, as a result of the proactive actions being taken within the regions in which we operate and by personnel at each of our sites, the Company has not experienced any material disruptions to its operations as a result of COVID-19. The Company’s Chelopech and Ada Tepe mines in Bulgaria continue to operate at full capacity and have not experienced any disruptions to their operations.

As previously reported, the Tsumeb smelter in Namibia curtailed its operations by shutting down ancillary plants for 30 days in April 2020 in response to a government directive to the natural resources sector aimed at limiting staffing levels. Full operations resumed in May 2020 with ongoing management of the number of employees and contractors working at site and continued observance of the COVID-19 controls that have been established across all sites. During the first quarter of 2021, Tsumeb’s maintenance shutdown, which was originally planned for 30 days, was extended to 45 days in part as a result of COVID-19 related safety protocols, travel restrictions and the use of remote commissioning support.

The Company continues to closely assess and monitor the COVID-19 situation. The Company is continuing with a number of measures to mitigate the associated risks, including procedures and contingency plans that were established at each operating location directed at safeguarding employees, managing potential supply chain disruptions, and maintaining production at each of its operations. Management of the situation is being overseen by an experienced cross-functional team that includes members of senior management and leaders at each of the Company’s operations.

The Company has experienced several positive cases of COVID-19 within its workforce. Positive cases are being effectively managed with testing, contact tracing and isolation measures and, to date, the vast majority of employees have recovered with the remaining employees isolating offsite in accordance with the Company’s procedures. Given the relatively low number of COVID-19 cases and the management protocols in effect, the impact on the Company’s operations has been minimal.

At present, there do not appear to be any imminent COVID-19 related circumstances that are expected to disrupt the Company’s operations, however, given the highly uncertain and evolving nature of this situation, the Company is not able to reliably estimate the likelihood, timing, duration, severity and scope of this pandemic and the potential impact it could have on the Company’s operating and financial results.

29. OPERATING SEGMENT INFORMATION

Operating segments are components of an entity whose operating results are regularly reviewed by the chief operating decision maker in deciding how to allocate resources and in assessing performance and for which separate financial information is available.

The Company has three reportable operating segments – Chelopech and Ada Tepe in Bulgaria and Tsumeb in Namibia. The nature of their operations, products and services are described in note 1 , Corporate Information . These segments are organized predominantly by the products and services provided to customers and geography of the businesses. The Corporate and Other segment includes corporate, exploration and evaluation and other income and cost items that do not pertain directly to an operating segment. There are no significant inter-segment transactions that have not been eliminated on consolidation.

DUNDEE PRECIOUS METALS INC. | 52

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

The operating results of MineRP have been presented as a discontinued operation for the years ended December 31, 2021 and 2020 and the assets and liabilities of MineRP have been presented as held for sale as at December 31, 2020 as a result of the MineRP Disposition (note 3).

The accounting policies of the segments are the same as those described in note 2.2, Significant Accounting Policies . Segment performance is evaluated based on several operating and financial measures, including net earnings (loss), which is measured consistently with net earnings (loss) in the consolidated financial statements.

The following table summarizes the net earnings (loss) and other relevant information by segment for the years ended December 31, 2021 and 2020:

==> picture [478 x 297] intentionally omitted <==

----- Start of picture text -----

Year ended December 31, 2021
Corporate
Chelopech Ada Tepe Tsumeb & Other Total
Continuing operations
Revenue (a) 292,779 229,314 119,350 - 641,443
Costs and expenses
Cost of sales 130,798 100,480 128,662 - 359,940
- - -
General and administrative expenses 18,161 18,161
- - -
Corporate social responsibility expenses 4,838 4,838
-
Exploration and evaluation expenses 6,089 2,204 9,713 18,006
Finance cost 722 430 2,967 1,430 5,549
Other (income) expense (1,632) (1,175) 884 7,454 5,531
135,977 101,939 132,513 41,596 412,025
Earnings (loss) before income taxes 156,802 127,375 (13,163) (41,596) 229,418
Income tax expense 16,046 17,419 - 5,224 38,689
Net earnings (loss) from
continuing operatons 140,756 109,956 (13,163) (46,820) 190,729
Other disclosures
Depreciation and amortization 22,063 54,405 18,202 1,537 96,207
Capital expenditures (b) 22,567 18,378 13,604 15,064 69,613
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DUNDEE PRECIOUS METALS INC. | 53

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

			YearendedDecember	YearendedDecember	31,2020
				Corporate
	Chelopech	AdaTepe	Tsumeb	& Other	Total
Continuing operations
Revenue_(a)_	264,855	197,573	147,130	-	609,558
Costs and expenses
Cost of sales	113,481	92,450	124,926	-	330,857
General and administrative expenses	-	-	-	30,604	30,604
Corporate social responsibility expenses	-	-	-	4,571	4,571
Exploration and evaluation expenses	3,664	2,146	-	13,262	19,072
Finance cost	714	1,617	2,899	1,792	7,022
Other(income) expense	238	1,123	462	(2,314)	(491)
	118,097	97,336	128,287	47,915	391,635
Earnings (loss) before income taxes	146,758	100,237	18,843	(47,915)	217,923
Income taxexpense (recovery)	13,929	9,438	-	(4,476)	18,891
Net earnings (loss) from
continuing operatons	132,829	90,799	18,843	(43,439)	199,032
Other disclosures
Depreciation and amortization	29,753	54,351	15,063	1,044	100,211
Capital expenditures_(b)_	21,058	15,523	9,531	3,185	49,297

• (a) Revenues from Chelopech and Ada Tepe were generated from the sale of concentrate and Tsumeb’s revenues were generated from processing concentrate and acid sales. For the year ended December 31, 2021, $237.7 million or 46% (2020 – $222.0 million or 48%) of revenues from the sale of concentrate and $100.5 million or 84% (2020 – $125.2 million or 85%) of revenues from processing concentrate were derived from a single external customer. Revenues from the sale of concentrate of $157.5 million or 30% (2020 – $123.7 million or 27%) were also derived from another single external customer.

• (b) Capital expenditures represent cash outlays and non-cash accruals in respect of exploration and evaluation assets (note 8), mine properties (note 9) , property, plant and equipment (note 10) and intangible assets (note 11) .

The following table summarizes the Company’s revenue recognized for the years ended December 31, 2021 and 2020:

2021 and 2020:
	2021	2020
Revenue recognized at a point in time from:
Sale of concentrate_(a)_	518,607	446,382
Processing concentrate_(b)_	100,509	125,201
Acid sales	18,841	21,929
Mark-to-market price adjustments
on provisionally priced sales	3,486	16,046
Total revenue	641,443	609,558

• (a) For the year ended December 31, 2021, the Company’s revenue from the sale of concentrate included a $1.8 million (2020 – $3.9 million) adjustment in connection with the final determination and settlement of prior year provisional sales and net mark-to-market losses of $19.3 million (2020 – $11.1 million) on commodity swap contracts entered to hedge provisionally priced sales.

DUNDEE PRECIOUS METALS INC. | 54

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

• (b) For the year ended December 31, 2021, the Company’s revenue from processing concentrate included a metal recovery of $2.6 million (2020 – $1.5 million) related to the estimated metal exposure at Tsumeb.

The following table summarizes the total assets and total liabilities by segment as at December 31, 2021 and 2020:

				As at December 31, 2021	As at December 31, 2021
				Corporate &
	**Chelopech **	Ada Tepe	Tsumeb	**Other **	**Total **
Total current assets	117,806	110,689	33,440	251,858	513,793
Total non-current assets	173,894	216,702	106,392	157,629	654,617
Total assets	291,700	327,391	139,832	409,487	1,168,410
Total liabilities	54,388	31,660	41,865	36,084	163,997

				As atDecember	31,2020
				Corporate &
	Chelopech	AdaTepe	Tsumeb	Other	Total
Total current assets	98,584	63,651	46,969	79,115	288,319
Total non-current assets	175,518	256,771	111,750	111,789	655,828
Assetsheldforsale				30,713	30,713
Total assets	274,102	320,422	158,719	221,617	974,860
Liabilities	52,830	27,776	37,660	45,307	163,573
Liabilities held for sale				6,003	6,003
Total liabilities	52,830	27,776	37,660	51,310	169,576

DPM is domiciled in Canada. Revenues by geographic location are based on the location in which the revenues originate. Revenues by geographic location for the years ended December 31, 2021 and 2020 are summarized below:

are summarized below:
	**Year ended December **		31, 2021
	Europe	Africa	Total
Revenue	522,093	119,350	641,443
		YearendedDecember	31,2020
	Europe	Africa	Total
Revenue	462,428	147,130	609,558

DUNDEE PRECIOUS METALS INC. | 55

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS For the years ended December 31, 2021 and 2020 (in thousands of U.S. dollars, unless otherwise indicated)

Assets by geographic location as at December 31, 2021 and 2020 are summarized below:

				As at December 31, 2021	As at December 31, 2021
				Ecuador
	Canada	Europe	Africa	(note 4)	Total
Total current assets	242,595	234,924	33,596	2,678	513,793
Financial assets	51,520	-	1,388	-	52,908
Deferred income tax assets	-	8,685	-	-	8,685
Other non-current assets	4,587	391,603	105,004	91,830	593,024
Total assets	298,702	635,212	139,988	94,508	1,168,410
				As at December 31,2020
	Canada	Europe	Africa	Ecuador	Total
Total current assets	74,079	167,244	46,996	-	288,319
Financial assets	106,595	-	1,509	-	108,104
Deferred income tax assets	-	9,470	-	-	9,470
Other non-current assets	4,203	423,811	110,240	-	538,254
Assets held for sale			30,713	-	30,713
Total assets	184,877	600,525	189,458	-	974,860

DUNDEE PRECIOUS METALS INC. | 56