DPM Metals Inc. — Interim / Quarterly Report 2021

Jul 29, 2021

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at June 30, 2021 and December 31, 2020

(unaudited, in thousands of U.S. dollars)

	June 30,	December 31,
	2021	2020
ASSETS
Current Assets
Cash	260,455	149,532
Accounts receivable	102,089	84,920
Inventories	44,446	43,049
Other current assets_(note 5(c) & 5(d))_	8,470	10,818
	415,460	288,319
Assets held for sale_(note 3)_	-	30,713
	415,460	319,032
Non-Current Assets
Investments at fair value_(note 5(a) & 5(b))_	76,911	106,595
Exploration and evaluation assets_(note 4)_	3,673	-
Mine properties	144,530	155,438
Property, plant & equipment	355,851	364,337
Intangible assets	16,853	16,139
Deferred income tax assets	9,548	9,470
Other long-termassets	7,720	3,849
	615,086	655,828
TOTAL ASSETS	1,030,546	974,860
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities	74,981	72,234
Income tax liabilities	3,610	910
Current portionof long-term liabilities	5,583	5,929
	84,174	79,073
Liabilitiesheldforsale (note 3)	-	6,003
	84,174	85,076
Non-Current Liabilities
Rehabilitation provisions	53,642	51,338
Share-based compensation plans	12,780	19,002
Other long-term liabilities	13,224	14,160
	79,646	84,500
TOTAL LIABILITIES	163,820	169,576
EQUITY
Share capital	527,017	525,219
Contributed surplus	11,746	7,078
Retained earnings	321,996	224,701
Accumulated othercomprehensiveincome	5,872	41,671
Equity attributable to common shareholders
of the Company	866,631	798,669
Non-controlling interests	95	6,615
TOTAL EQUITY	866,726	805,284
TOTAL LIABILITIES AND EQUITY	1,030,546	974,860

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

DUNDEE PRECIOUS METALS INC. | 1

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) For the three and six months ended June 30, 2021 and 2020

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

	Three months ended	Three months ended	Six months ended	Six months ended
	June	30,	June	30,
	2021	2020	2021	2020
Continuing Operations
Revenue(note 13)	174,736	154,028	312,766	301,815
Costs and expenses
Cost of sales	89,941	82,941	175,584	169,865
General and administrative expenses	2,982	12,179	6,847	14,150
Corporate social responsibility expenses	654	757	1,133	1,480
Exploration and evaluation expenses	5,055	3,914	9,685	7,659
Finance cost	1,314	1,709	2,717	3,928
Other(income) expense	(142)	(433)	6,591	389
	99,804	101,067	202,557	197,471
Earnings before income taxes	74,932	52,961	110,209	104,344
Current income tax expense	9,007	6,554	17,279	11,840
Deferredincome taxexpense (recovery)	(1,564)	(1,628)	4,727	(1,220)
Net earnings from continuing operations	67,489	48,035	88,203	93,724
Discontinued Operations
Net earnings (loss) from discontinued operations
(note 3)	20,630	1,058	19,738	(2,195)
**Net earnings **	88,119	49,093	107,941	91,529
Net earnings (loss) attributable to:
Common shareholders of the Company
From continuing operations	67,502	48,047	88,221	93,748
From discontinued operations	20,651	823	19,994	(1,707)
Non-controllinginterests	(34)	223	(274)	(512)
**Net earnings **	88,119	49,093	107,941	91,529
Earnings (loss) per share attributable to
common shareholders of the Company
- Basic
From continuing operations	0.37	0.27	0.49	0.52
From discontinued operations	0.11	0.00	0.11	(0.01)
- Diluted
From continuing operations	0.37	0.27	0.48	0.52
From discontinued operations	0.11	0.00	0.11	(0.01)

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

DUNDEE PRECIOUS METALS INC. | 2

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) For the three and six months ended June 30, 2021 and 2020

(unaudited, in thousands of U.S. dollars)

	Three months ended	Three months ended	Six months ended	Six months ended
	June	30,	June	30,
	2021	2020	2021	2020
Net earnings	88,119	49,093	107,941	91,529
Other comprehensive income (loss) items that may be
reclassified subsequently to profit or loss:
Foreign exchange option contracts designated as
cash flow hedges
Unrealized gains (losses), net of income tax
of $nil for all periods	4,022	(3,056)	3,402	(7,504)
Deferred cost of hedging, net of income tax
of $nil for all periods	(1,832)	6,412	(1,849)	(5,392)
Realized (gains) losses transferred to cost of sales,
net of income tax of $nil for all periods	(2,373)	2,273	(3,596)	2,326
Commodity swap contracts designated as
cash flow hedges
Unrealized losses, net of income tax recovery of
$623 (2020 - $nil) and $1,394 (2020 - $nil),
respectively	(5,602)	-	(12,544)	-
Deferred cost of hedging, net of income tax recovery
of $33 (2020 - $nil) and $73 (2020 - $nil),
respectively	(282)	-	(655)	-
Realized losses transferred to revenue, net of
income tax recovery of $496 (2020 - $nil)
and $600 (2020 - $nil), respectively	4,471	-	5,404	-
Cost of hedging transferred to revenue, net of
income tax recovery of $25 (2020 - $nil)
and $26 (2020 - $nil), respectively	223	-	236	-
Currency translation adjustments from
discontinued operations	(1,074)	(695)	(1,210)	(4,891)
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 $617
(2020-$880) and ($4,287) (2020-$880), respectively	4,039	28,903	(28,071)	4,353
	1,592	33,837	(38,883)	(11,108)
Comprehensive income	89,711	82,930	69,058	80,421
Comprehensive income (loss) attributable to:
Common shareholders of the Company
From continuing operations	70,168	82,579	50,548	87,531
From discontinued operations	19,780	283	19,023	(5,511)
Non-controllinginterests	(237)	68	(513)	(1,599)
Comprehensive income	89,711	82,930	69,058	80,421

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

DUNDEE PRECIOUS METALS INC. | 3

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS For the three and six months ended June 30, 2021 and 2020

(unaudited, in thousands of U.S. dollars)

	Three months ended	Three months ended	Six months ended	Six months ended
	June	30,	June	30,
	2021	2020	2021	2020
OPERATING ACTIVITIES
Earnings before income taxes	74,932	52,961	110,209	104,344
Revenue transferred from deferred revenue	-	(9,569)	-	(27,470)
Depreciation and amortization	24,247	26,031	48,425	50,087
Changes in working capital_(note 9(a))_	(8,976)	6,268	(24,253)	(40,954)
Other Items not affecting cash_(note 9(b))_	7,311	4,358	11,923	9,417
Payments for settlement of derivative contracts	(9,942)	(3,364)	(11,107)	(5,326)
Income taxespaid	(11,875)	(3,090)	(11,909)	(5,508)
Cash provided from operating activities of
continuing operations	75,697	73,595	123,288	84,590
Cash provided from (used in) operating activities of
discontinued operations(note 3)	(27)	1,866	(442)	296
INVESTING ACTIVITIES
Proceeds from MineRP Disposition_(note 3)_	45,830	-	45,830	-
Purchase of publicly traded securities	(4,377)	-	(8,307)	-
Proceeds from disposal of mine properties, property,
plant and equipment and intangible assets	-	122	-	122
Expenditures on exploration and evaluation assets	(2,545)	-	(2,583)	-
Expenditures on mine properties	(3,384)	(978)	(6,299)	(2,137)
Expenditures on property, plant and equipment	(12,717)	(4,944)	(20,436)	(10,887)
Expenditures on intangible assets	(1,614)	(1,114)	(2,163)	(2,173)
Increase in restricted cash	(5,128)	-	(5,128)	-
Cash provided from (used in) investing activities of
continuing operations	16,065	(6,914)	914	(15,075)
Cash used in investing activities of
discontinued operations(note 3)	-	(1,049)	-	(1,104)
FINANCING ACTIVITIES
Proceeds from share issuance	138	410	1,178	1,182
Repayments of credit facilities_(note 6(a))_	-	-	-	(10,000)
Lease obligations	(1,062)	(984)	(2,119)	(1,907)
Dividend paid_(note 10)_	(5,459)	(3,610)	(10,901)	(3,610)
Interest and finance feespaid	(630)	(1,077)	(1,437)	(1,856)
Cash used in financing activities of
continuing operations	(7,013)	(5,261)	(13,279)	(16,191)
Cash used in financing activities of
discontinued operations(note 3)	(35)	(80)	(140)	(168)
Increase in cash of continuing operations	84,749	61,420	110,923	53,324
Increase(decrease)in cash of discontinued operations	(62)	737	(582)	(976)
Cash at beginning of period, continuing operations	175,706	13,187	149,532	21,283
Cash at beginningofperiod,discontinued operations	62	444	582	2,157
Cash at end of period, continuing operations	260,455	74,607	260,455	74,607
Cash at end ofperiod, discontinued operations	-	1,181	-	1,181

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

DUNDEE PRECIOUS METALS INC. | 4

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY For the six months ended June 30, 2021 and 2020

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

	June 30, 2021 June 30,2020
	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 period Shares issued as part of an exploration option agreement Shares issued on exercise of stock options Transferred from contributed surplus onexercise ofstockoptions	181,400,125 525,219 180,537,053 522,351 - - 25,000 154 630,244 1,178 563,811 1,182 620 613
Balance at end of period	182,030,369 527,017 181,125,864 524,300
Contributed surplus Balance at beginning of period Share-based compensation expense Transferred to share capital on exercise of stock options MineRP Disposition_(note 3)_ Otherchangesincontributed surplus	7,078 9,150 508 469 (620) (613) 4,741 - 39 (414)
Balance at end of period	11,746 8,592
Retained earnings Balance at beginning of period shareholders of the Company Dividend distribution_(note 10)_ Net earnings attributable to common	224,701 45,007 108,215 92,041 (10,920) (7,241)
Balance at end of period	321,996 129,807
Balance at beginning of period 41,671 10,108 Other comprehensive loss (38,644) (10,021) MineRP Disposition_(note 3)_ 2,845 - Accumulated other comprehensive income (loss)
Balance at end of period 5,872 87
Total equity attributable to common shareholders of the Company 866,631 662,786
Non-controlling interests Balance at beginning of period 6,615 6,278 Net loss attributable to non-controlling interests (274) (512) Other comprehensive loss attributable to (239) (1,087) MineRP Disposition_(note 3)_ (6,010) - 3 414 non-controlling interests Otherchangesin non-controllinginterests
Balance at end of period 95 5,093
Total equity at end ofperiod 866,726 667,879

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

DUNDEE PRECIOUS METALS INC. | 5

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, 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 June 30, 2021, DPM’s condensed interim 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 Serbia, Canada, Bulgaria and Ecuador including:

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

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

• 23.5% of INV Metals Inc. (“INV”), which is focused on the exploration and development of the Loma Larga gold project located in Ecuador. On July 26, 2021, DPM completed the acquisition of the remaining portion of INV not already held by DPM, and now owns 100% of INV ( note 14 ).

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. BASIS OF PREPARATION

These condensed interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board, including International Accounting Standard 34, Interim Financial Reporting . These condensed interim consolidated financial statements do not include all of the information required for full financial statements and should be read in conjunction with the Company’s annual consolidated financial statements for the year ended December 31, 2020, which have been prepared in accordance with IFRS.

The accounting policies applied in these condensed interim consolidated financial statements are consistent with those applied in the preparation of the Company’s annual consolidated financial statements for the year ended December 31, 2020 .

These condensed interim consolidated financial statements were approved by the Board of Directors on July 29, 2021.

DUNDEE PRECIOUS METALS INC. | 6

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, 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)
Estimated working capital adjustment	(753)
Estimated closing indebtedness	(524)
Estimated closing cash	176
Cash consideration	37,328
Less:transactioncosts	(3,048)
Net cash consideration	34,280
Cashpaid tonon-controllinginterests	(9,021)
Net cash consideration received for DPM's equity interest in MineRP(i), (ii)	25,259
Net assets disposed:
Cash	247
Accounts receivable	2,231
Property, plant & equipment	1,137
Intangible assets	26,760
Other long-termassets	230
Total assets disposed	30,605
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	1,701
Reclassification of currency translation adjustments from
accumulated other comprehensive income	(2,845)
Gain on MineRP Disposition included in net earnings
from discontinued operations	20,713

(i) Net cash consideration received includes $5.1 million held in escrow on closing to secure against any post closing adjustments related to working capital and certain representations and warranties for a period up to 2 years. This $5.1 million was recognized as restricted cash in the condensed interim consolidated statements of financial position as at June 30, 2021, of which $1.6 million relating to working capital items was included in other current assets and $3.5 million relating to other indemnities was included in other long-term assets.

DUNDEE PRECIOUS METALS INC. | 7

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

• (ii) 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 June 30, 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 condensed interim consolidated statements of earnings (loss) and cash flows for the three and six months ended June 30, 2021 and 2020. As a consequence, certain comparative figures in the condensed interim consolidated statements of earnings (loss) and cash flows have been reclassified to conform with current period presentation.

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-termassets	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 three and six months ended June 30, 2021 and 2020:

	Three months ended	Three months ended	Six months ended	Six months ended
	June 30,		June 30,
	2021	2020	2021	2020
Revenue	633	3,008	4,521	6,925
Costs and expenses
Cost of sales	777	1,637	3,726	5,284
General and administrative expenses	631	1,321	2,384	2,855
Other(income) expense	(692)	(701)	(603)	1,352
	716	2,257	5,507	9,491
Earnings (loss) before income taxes	(83)	751	(986)	(2,566)
Deferred income tax recovery	-	(307)	(11)	(371)
Net earnings (loss) from discontinued operations
before gain on MineRP Disposition	(83)	1,058	(975)	(2,195)
Gain on MineRP Disposition	20,713	-	20,713	-
Net earnings (loss) from discontinued operations	20,630	1,058	19,738	(2,195)

DUNDEE PRECIOUS METALS INC. | 8

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

4. EXPLORATION AND EVALUATION ASSETS

In February 2021, the Company announced the results of a pre-feasibility study (“PFS”) 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, $3.7 million costs related to the FS for the Timok gold project were capitalized to exploration and evaluation assets in the condensed interim consolidated statements of financial position as at June 30, 2021.

5. 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 condensed interim consolidated statements of financial position:

Financial instrument classification	Carrying Amount
	June 30,December 31, 2021 2020
Financial assets Cash Amortized cost Accounts receivable on provisionally priced sales Fair value through profit or loss Other accounts receivable Amortized cost Restricted cash Amortized cost Sabina special warrants_(a) Fair value through profit or loss Publicly traded securities(b) Fair value through other comprehensive income Commodity swap contracts(c) Derivatives for cash flow and fair value hedges Foreign exchange option contracts(d)_ Derivatives for cash flow hedges	260,455149,532 57,54052,957 44,54931,963 7,2772,111 6,49812,128 70,41394,467 1,195104 4,3216,364
Financial liabilities Accounts payable and accrued liabilities Amortized cost Commodity swap contracts_(c)_ Derivatives for cash flow and fair value hedges	66,75066,465 8,2315,769

The carrying values of all the financial assets and liabilities measured at amortized cost approximate their fair values as at June 30, 2021 and December 31, 2020.

(a) Sabina special warrants

During the six months ended June 30, 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 June 30, 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.

For the three and six months ended June 30, 2021, the Company recognized unrealized losses on the Sabina special warrants of $0.2 million (2020 – unrealized gains of $3.0 million) and $5.6 million (2020 – unrealized gains of $0.1 million), respectively, in other (income) expense in the condensed interim consolidated statements of earnings (loss).

DUNDEE PRECIOUS METALS INC. | 9

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

(b) Publicly traded securities

Publicly traded securities include a portfolio of equity investments in publicly traded mining and exploration companies, comprised primarily of Sabina and INV.

During the six months ended June 30, 2021, the Company increased its equity interest in INV from 19.4% to 23.5% for an additional cost of $3.1 million. On July 26, 2021, the Company acquired all of the issued and outstanding shares it did not already own of INV (note 14) .

For the three and six months ended June 30, 2021, the Company recognized unrealized gains on these publicly traded securities of $4.6 million (2020 – $29.8 million) and unrealized losses of $32.4 million (2020 – unrealized gains of $5.2 million), respectively, in other comprehensive income (loss) that will not be reclassified subsequently to profit or loss.

(c) Commodity swap contracts

The Company enters into 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 (“QP Hedges”).

As at June 30, 2021, the Company’s outstanding QP Hedges, all of which mature within six months from the reporting date, are summarized in the table below:

		Weighed average fixed price
Commodity hedged	Volume hedged	of QP Hedges
Payable gold	21,825 ounces	$1,822.10/ounce
Payable copper	9,534,982 pounds	$4.27/pound

The Company also enters into 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 (“Production Hedges”).

As at June 30, 2021, the Company had outstanding commodity swap contracts in place in respect of its projected copper production as summarized in the table below:

Year of projected	Volume of copper hedged	Average fixed price
production	(pounds)	($/pound)
Balance of 2021	17,497,167	3.77

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.

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 prices, as applicable. As at June 30, 2021, the net fair value loss on all outstanding commodity swap contracts was $7.0 million (December 31, 2020 – $5.7 million), of which $1.2 million (December 31, 2020 – $0.1 million) was included in other current assets and $8.2 million (December 31, 2020 – $5.8 million) in accounts payable and accrued liabilities.

The Company recognized net losses of $8.6 million (2020 – $3.1 million) and $7.2 million (2020 – $4.1 million), respectively, for the three and six months ended June 30, 2021 in revenue on these commodity swap contracts.

DUNDEE PRECIOUS METALS INC. | 10

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

For the three and six months ended June 30, 2021, the Company recognized unrealized losses of $1.2 million (2020 – $nil) and $7.9 million (2020 – $nil), respectively, in other comprehensive income (loss) on the spot component of the outstanding commodity swap contracts in respect of Production Hedges. The Company also recognized unrealized losses of $0.1 million (2020 – $nil) and $0.5 million (2020 – $nil), respectively, for the three and six months ended June 30, 2021 on the forward point component of the outstanding commodity swap contracts in respect of Production Hedges in other comprehensive income (loss) as a deferred cost of hedging.

(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 are entered to provide price protection below a specified “floor” rate and participation up to a specified “ceiling” rate. The option contracts entered are comprised of 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 June 30, 2021, the Company had outstanding foreign exchange option contracts in respect of a portion of its projected South African Rand (“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
Balance of 2021	649,790,000	18.69	15.65

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

The Company designates the intrinsic value of foreign exchange 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 was calculated based on foreign exchange forward rates quoted in the market. As at June 30, 2021, the net fair value gain on all outstanding foreign exchange option contracts was $4.3 million (December 31, 2020 – $6.4 million), which was included in other current assets.

For the three and six months ended June 30, 2021, the Company recognized unrealized gains of $1.6 million (2020 – unrealized losses of $0.8 million) and unrealized losses of $0.2 million (2020 – $5.2 million), respectively, in other comprehensive income (loss) on the spot component of the outstanding foreign exchange option contracts. The Company also recognized realized gains of $2.4 million (2020 – realized losses of $2.3 million) and $3.6 million (2020 – realized losses of $2.4 million), respectively, for the three and six months ended June 30, 2021 in cost of sales on the spot component of settled contracts.

For the three and six months ended June 30, 2021, the Company recognized unrealized losses of $1.8 million (2020 – unrealized gains of $6.4 million) and $1.8 million (2020 – $5.4 million), respectively, 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. | 11

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

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 June 30, 2021 and December 31, 2020:

			As at June 30, 2021	As at June 30, 2021
	Level 1	Level 2	Level 3	Total
Financial assets
Accounts receivable on provisionally
priced sales	-	57,540	-	57,540
Sabina special warrants	-	-	6,498	6,498
Publicly traded securities	70,413	-	-	70,413
Commodity swap contracts	-	1,195	-	1,195
Foreign exchange option contracts	-	4,321	-	4,321
Financial liabilities
Commodityswapcontracts	-	8,231	-	8,231
			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 six months ended June 30, 2021 and the year ended December 31, 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, 2020 to June 30, 2021:

Balance as at January 1, 2020	6,488
Unrealized gainsincludedin net earnings	5,640
Balance as at December 31, 2020	12,128
Unrealizedlossesincludedin net earnings	(5,630)
Balance as at June 30, 2021	6,498

DUNDEE PRECIOUS METALS INC. | 12

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

6. 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 June 30, 2021 and December 31, 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 ($7.0 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 June 30, 2021 and December 31, 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 June 30, 2021, $10.7 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 ($24.9 million) credit facility to support mine closure and rehabilitation obligations. This credit facility matures on November 30, 2022 and is guaranteed by DPM. As at June 30, 2021, $24.9 million (December 31, 2020 – $25.8 million) had been utilized against this credit facility in the form of letters of guarantee, which were posted with the Bulgarian Ministry of Energy.

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 June 30, 2021, $4.1 million (December 31, 2020 – $0.2 million) had been utilized against this multi-purpose revolving facility in the form of letters of credit and letters of guarantee.

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.

7. SHARE-BASED COMPENSATION PLANS

The following is a summary of the new grants under the Company’s share-based compensation plans during the six months ended June 30, 2021:

	Number of units granted	Fair valuegranted
Restricted Share Units	680,998	4,173
Performance Share Units	228,998	1,406
Deferred Share Units	90,310	559
DPM Stock Options	452,428	1,092

DUNDEE PRECIOUS METALS INC. | 13

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

For the three and six months ended June 30, 2021, mark-to-market adjustments related to the change in DPM’s share price resulted in an increase in share-based compensation of $1.2 million (2020 – $11.9 million) and a decrease of $1.7 million (2020 – an increase of $7.0 million), respectively.

8. 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 condensed interim consolidated statements of earnings (loss) for the three and six months ended June 30, 2021 and 2020 was as follows:

was as follows:
	Three months ended		Six months ended
	June 30,		June 30,
	2021	2020	2021	2020
Salaries, management bonuses and
director fees	865	769	1,707	1,675
Other benefits	61	56	123	122
Share-based compensation	**967 **	6,561	(810)	5,488
Total remuneration	1,893	7,386	1,020	7,285

9. SUPPLEMENTARY CASH FLOW INFORMATION

(a) Changes in working capital

	Three months ended	Three months ended	Six months ended	Six months ended
	June 30,		June	30,
	2021	2020	2021	2020
(Increase) decrease in accounts receivable
and other assets	2,409	1,668	(15,414)	(38,047)
(Increase) decrease in inventories	(1,951)	(1,764)	329	3,641
Increase (decrease) in accounts payable
and accrued liabilities	36	2,746	1,464	(8,614)
Increase (decrease)inother liabilities	(9,470)	3,618	(10,632)	2,066
	(8,976)	6,268	(24,253)	(40,954)

DUNDEE PRECIOUS METALS INC. | 14

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

(b) Other items not affecting cash

	Three months ended	Three months ended	Six months ended	Six months ended
	June 30,		June 30,
	2021	2020	2021	2020
Net finance cost	1,222	1,684	2,533	3,861
Share-based compensation expense	260	234	508	469
Net (gains) losses on Sabina special
warrants	231	(3,069)	5,630	(114)
Net losses on commodity swap contracts	8,579	3,071	7,236	3,846
Net (gains) losses on foreign exchange
option contracts	(2,373)	2,273	(3,596)	2,326
Other,net	(608)	165	(388)	(971)
	7,311	4,358	11,923	9,417

10. DIVIDEND

On February 11, 2021 and May 5, 2021, the Company declared a quarterly dividend of $0.03 (2020 – $0.02) per common share to shareholders of record on March 31, 2021 and June 30, 2021, respectively, resulting in total dividend distributions of $10.9 million (2020 – $7.2 million) recognized against its retained earnings in the condensed interim consolidated statements of changes in shareholders’ equity for the six months ended June 30, 2021. The Company paid an aggregate of $10.9 million (2020 – $3.6 million) of dividends which were included in cash used in financing activities in the condensed interim consolidated statements of cash flows for the six months ended June 30, 2021 and recognized a dividend payable of $5.5 million (December 31, 2020 – $5.4 million) in accounts payable and accrued liabilities in the condensed interim consolidated statements of financial position as at June 30, 2021.

On July 29, 2021, the Company declared a dividend of $0.03 per common share payable on October 15, 2021 to shareholders of record on September 30, 2021.

11. COMMITMENTS AND OTHER CONTINGENCIES

(a) Commitments

The Company had the following minimum contractual commitments as at June 30, 2021:

	up to 1year	1 -5 years	Total
Capital commitments	9,350	-	9,350
Purchase commitments	19,868	16,862	36,730
Total commitments	29,218	16,862	46,080

As at June 30, 2021, Tsumeb had approximately $97.7 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 S.A. (“IXM”) pursuant to a tolling agreement (the “Tolling Agreement”). As at June 30, 2021, the value of excess secondary materials, as defined in the Tolling Agreement, was approximately $62.4 million (December 31, 2020 – $45.4 million).

DUNDEE PRECIOUS METALS INC. | 15

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

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 June 30, 2021, the volume of excess secondary materials was below targeted levels.

(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.

12. 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.

In April 2020, the Tsumeb smelter in Namibia curtailed its operations by shutting down ancillary plants for 30 days in response to a government directive to the natural resources industry 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, particularly as governments in various jurisdictions maintain and/or implement new measures to manage a resurgence in the number of cases and the impact on their medical systems and economies. 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.

DUNDEE PRECIOUS METALS INC. | 16

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

13. 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.

The operating results of MineRP have been presented as a discontinued operation for the three and six months ended June 30, 2021 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 following table summarizes the relevant information by segment for the three and six months ended June 30, 2021 and 2020:

June 30, 2021 and 2020:
		Three months		ended June	30, 2021
				Corporate
	Chelopech	**Ada Tepe **	Tsumeb	& Other	Total
Continuing Operations
Revenue_(a)_	78,810	55,849	40,077	-	174,736
Earnings (loss) before income taxes	44,834	30,586	6,087	(6,575)	74,932
Capital expenditures	6,347	4,605	1,490	3,352	15,794
		Three months ended June			30,2020
				Corporate
	Chelopech	Ada Tepe	Tsumeb	& Other	Total
Continuing Operations
Revenue_(a)_	59,774	55,993	38,261	-	154,028
Earnings (loss) before income taxes	31,843	29,290	5,319	(13,491)	52,961
Capital expenditures	4,389	5,198	1,031	1,002	11,620
		**Six months ended June **			30, 2021
				Corporate
	**Chelopech **	Ada Tepe	Tsumeb	**& Other **	**Total **
Continuing Operations
Revenue_(a)_	150,515	113,266	48,985	-	312,766
Earnings (loss) before income taxes	81,639	63,929	(14,369)	(20,990)	110,209
Capital expenditures	10,639	8,943	10,724	4,519	34,825
			Six months ended June		30,2020
				Corporate
	Chelopech	AdaTepe	Tsumeb	& Other	Total
Continuing Operations
Revenue_(a)_	122,908	99,022	79,885	-	301,815
Earnings (loss) before income taxes	64,934	49,246	12,640	(22,476)	104,344
Capitalexpenditures	8,794	6,988	3,445	1,975	21,202

DUNDEE PRECIOUS METALS INC. | 17

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

• (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.

The following table summarizes the Company’s revenue recognized for the three and six months ended June 30, 2021 and 2020:

	Three months ended	Three months ended	Six months ended	Six months ended
	June	30,	June	30,
	2021	2020	2021	2020
Revenue recognized at a point in time from:
Sale of concentrate	130,922	109,262	263,003	215,004
Processing concentrate	35,898	32,170	42,511	67,166
Acid sales	4,179	6,091	6,474	12,719
Mark-to-market price adjustments
on provisionally priced sales	3,737	6,505	778	6,926
Total revenue	174,736	154,028	312,766	301,815

The following table summarizes the total assets and total liabilities by segment as at June 30, 2021 and December 31, 2020:

				As at June 30, 2021
				Corporate
	Chelopech	Ada Tepe	Tsumeb	& Other Total
Total current assets	168,803	131,616	33,407	81,634 415,460
**Total non-current assets **	175,814	235,068	114,556	89,648615,086
Total assets	344,617	366,684	147,963	171,282 1,030,546
Total liabilities	58,706	33,224	41,008	30,882 163,820
				As atDecember31,2020
				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
Totalassets	274,102	320,422	158,719	221,617974,860
Liabilities	52,830	27,776	37,660	45,307 163,573
Liabilitiesheldforsale				6,003 6,003
Total liabilities	52,830	27,776	37,660	51,310169,576

DUNDEE PRECIOUS METALS INC. | 18

NOTES TO CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS For the three and six months ended June 30, 2021 and 2020 (unaudited, in thousands of U.S. dollars, unless otherwise indicated)

14. SUBSEQUENT EVENT

Acquisition of INV

On July 26, 2021, the Company acquired all of the issued and outstanding shares it did not already own of INV, 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 DPM common shares 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 provisional allocation to the assets acquired and liabilities assumed as at the date of acquisition.

Consideration paid

DPM common shares issued, net of estimated share issuance costs	60,844
Fair value of previously held equity interest(i)	17,988
DPM stock options_(ii)_	2,366
Estimated transactioncosts	2,500
Total consideration paid	83,698
Assets acquired and liabilities assumed
Cash	1,768
Other current assets	265
Investments at fair value	386
Property, plant and equipment	460
Exploration and evaluation assets	87,273
Other long-term assets	630
Accounts payable and accrued liabilities	(6,063)
Other long-term liabilities	(1,021)
Net assets acquired	83,698

(i) The fair value of the 35,344,424 INV shares previously held by DPM (note 5(b)) was based on the market price of INV shares of $0.51 (Cdn$0.64) per share as at the date of acquisition.

(ii) 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.

DUNDEE PRECIOUS METALS INC. | 19