Dundee Corporation Reports First Quarter 2011 Financial Results

Dundee Corporation (TSX:DC.A)(TSX:DC.PR.A)(TSX:DC.PR.B) (the "Company") is today
reporting its financial results as at and for the three months ended March 31,
2011. 


During the three months ended March 31, 2011, the Company generated net earnings
from continuing operations of $17.7 million, or $0.17 per share on a fully
diluted basis, compared with net earnings from continuing operations of $15.5
million or $0.11 per share in the same period of 2010. 


Net earnings during the first quarter of 2011, including earnings from
discontinued operations, were $878.8 million, or $12.20 per share on a fully
diluted basis and include a gain of $870.8 million from the divestment of the
Company's interest in DundeeWealth Inc. completed in February of the current
year.


The Company's earnings from continuing operations reflect improvements across
each of its business segments. Real estate operations generated net earnings
before income taxes of $11.7 million during the first quarter of 2011, a 21%
increase compared with the $9.7 million earned in the same period of 2010.
Earnings from real estate operations benefitted from improved results in Dundee
Real Estate Investment Trust. The Company's equity earnings from this investment
increased to $3.9 million in the first quarter of 2011 compared with a loss of
$4.1 million incurred in the same period of 2010.


Earnings from the Company's resource segment include a full quarter of
operations relating to Eurogas Corporation's oil and gas assets in southern
Ontario. As these assets were acquired late in the second quarter of the prior
year, there are no comparative operating amounts reflected in earnings during
the first quarter of 2010. Earnings from the resource segment were $7.3 million
in the three months ended March 31, 2011, compared with $7.1 million earned in
the same period of the prior year. Equity earnings from the Company's resource
based investments, including Breakwater Resources Ltd. and Dundee Precious
Metals Inc. were $11.1 million in the first quarter of 2011, a 32% increase over
the $8.4 million earned in the same period of 2010. 


The Company's asset management business continues to expand. Management fees
earned on asset management activities were $8.1 million in the first three
months of 2011 compared with $6.4 million earned in the same period of 2010. 


Ned Goodman Investment Counsel Limited ("NGIC"), the Company's registered
portfolio and investment fund manager, earned management fees of $1.5 million in
the first quarter of 2011 compared with $1.0 million earned in the same period
of the prior year. NGIC is continuing to provide sub-advisory services to
certain mutual funds and other investment products managed by DundeeWealth Inc. 


Dundee Real Estate Asset Management ("DREAM"), the asset management division of
the Company's real estate subsidiary, generated management fees of $5.7 million
in the first quarter of 2011 compared with $4.3 million earned in the same
period of the prior year, reflecting substantial acquisitions of real estate
property by entities for which DREAM provides real estate asset management
services.


Dundee Capital Markets Inc. generated earnings before taxes of $5.3 million in
the first three months of 2011, a decrease of 5% compared with net earnings of
$5.6 million earned in the same period of 2010, reflecting increased selling,
general and administrative costs associated with its business restructuring.
Following the market volatility of recent years, 2010 and the first quarter of
2011 have shown signs of renewed growth and investment activities. This is
evidenced in the growth of new issues and mergers and acquisitions activity
throughout diversified industry sectors across Canada. While Dundee Capital
Markets Inc. has benefitted from this increased activity, with revenues
increasing almost 30% in the current quarter compared with the first quarter of
the prior year, emphasis has been placed on strengthening and broadening
competencies within its areas of focus including resources, real estate,
infrastructure and special situations, in anticipation of a more specialized
entrepreneurial firm.
Dundee (TSX:DC.PR.B)
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