Dundee Corporation Reports 2011 Financial Results

Dundee Corporation (TSX:DC.A)(TSX:DC.PR.A)(TSX:DC.PR.B) (the "Corporation") is
today reporting its financial results as at and for the year ended December 31,
2011. The Corporation's audited annual consolidated financial statements, along
with management's discussion and analysis and annual information form have been
filed on the System for Electronic Document Analysis and Retrieval ("SEDAR") and
may be viewed under the Corporation's profile at www.sedar.com or the
Corporation's website at www.dundeecorporation.com.


FINANCIAL HIGHLIGHTS



--  Net Earnings attributable to equity holders in 2011 were $1.0 billion or
    $15.10 per share on a fully diluted basis. This compares with net
    earnings of $201 million in 2010 or $2.56 per share on a fully diluted
    basis. Net earnings in 2011 included a gain of $870.8 million from the
    Corporation's divestment of its interest in DundeeWealth, which was
    completed during the first quarter of 2011.
    
    
--  Net Earnings from Continuing Operations attributable to equity holders
    for the year ended December 31, 2011 were $173.2 million or $2.17 per
    share on a fully diluted basis. This compares to net earnings from
    continuing operations attributable to equity holders of $199.3 million
    or $2.05 per share on a fully diluted basis, earned in the prior year.
    Current year per share amounts reflect the impact of the Corporation's
    substantial issuer bid and subsequent cancellation of 10 million Class A
    subordinate voting shares, which was completed in the fourth quarter of
    2011.
    
    
--  Gain on Sale of Breakwater Resources Ltd. - Included in the 2011
    earnings is a pre-tax gain of $95.6 million ($71.1 million after tax)
    from the Corporation's divestment of Breakwater.
    
    
--  Market Value of Investments - The market value of the Corporation's
    portfolio of investments was $1.5 billion at December 31, 2011, and
    includes shares of The Bank of Nova Scotia received by the Corporation
    on its divestment of DundeeWealth Inc. Amidst concerns of a global
    economic downturn and the impact on financial markets generally, during
    2011, the Corporation's portfolio of available-for- sale securities
    depreciated by $181.7 million, including $106.3 million relating to the
    Corporation's interest in Scotiabank received in consideration for its
    divestment of DundeeWealth.
    
--  Equity Accounted Investments - Earnings from equity accounted
    investments were $61.8 million in 2011 compared with $75.4 million in
    the prior year. At December 31, 2011, the market value of these equity
    accounted investments was $617.0 million.
    
    
--  Fee Earning Assets under Management and Administration increased to
    $12.3 billion at December 31, 2011, compared with $10.4 billion at
    December 31, 2010.
    
    
--  Corporate Debt at December 31, 2011 was $546.6 million and included
    $269.6 million borrowed in our real estate and resource based
    subsidiaries. 



STRATEGIC DEVELOPMENTS IN THE FOURTH QUARTER OF 2011

Substantial Issuer Bid

During the fourth quarter, the Corporation launched a substantial issuer bid to
purchase for cancellation up to 10 million of its Class A subordinate shares for
$23.75 per share or $237.5 million in aggregate. The Corporation took up and
paid for 10 million of the Class A Subordinate Shares representing approximately
16.2% of the Class A Subordinate Shares issued and outstanding immediately prior
to completion of the transaction. The Corporation funded the purchase price
using working capital provided through its established credit facilities as well
as the sale of certain of its portfolio investments.


Expansion in the Agricultural Sector

The Corporation recently established Dundee Agricultural Corporation, a wholly
owned subsidiary, to focus on sustainable agricultural investment opportunities
across Canada and globally. In December 2011, Dundee Agricultural made its first
anchor investment through the acquisition of an 81% interest in Blue Goose
Capital Corporation, the parent company to Blue Goose Cattle Company, a leading
operator in the organic and natural beef production market. Blue Goose has
operations in both British Columbia and Ontario.


Acquisition of Dundee Capital Markets Inc.

Subsequent to December 31, 2011, the Corporation completed the acquisition of
all of Dundee Capital Markets' outstanding common shares not already held by the
Corporation at a price of $1.125 per share by way of a court approved plan of
arrangement under the Business Corporations Act (Ontario). The Corporation paid
$88.0 million in respect of the transaction. The transaction was completed in
February 2012 and the Corporation currently owns all of the common shares of
Dundee Capital Markets.




2011 SEGMENTED RESULTS OF OPERATIONS                                        
                                                                            
(in millions of dollars)                                                    
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For the years ended December 31,                        2011           2010 
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Net earnings (loss) before income taxes from:                               
  Real estate segment                              $    98.6      $   122.1 
  Resource segment                                     123.5           50.0 
  Agriculture segment                                   (0.7)             - 
  Asset management segment                              (7.1)          38.8 
  Capital markets segment                                9.9           49.8 
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                                                       224.2          260.7 
Income taxes                                           (51.0)         (61.4)
Discontinued operations                                850.8           84.5 
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Net earnings for the year                          $ 1,024.0      $   283.8 
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Net earnings attributable to:                                               
Owners of the parent                                 1,014.6          201.1 
Non-controlling interest                                 9.4           82.7 
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                                                   $ 1,024.0      $   283.8 
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The Corporation's real estate segment generated net earnings before income taxes
of $98.6 million during 2011 compared with $122.1 million earned in the prior
year. Lower earnings in 2011 were in line with expectations for the year, as
Dundee Realty had expected a drop in demand and adjusted development activity
accordingly. The Corporation's share of earnings from its investments in Dundee
REIT and Dundee International REIT was $25.8 million in aggregate compared with
$18.3 million in the prior year, and included the Corporation's share of net
gains from changes in fair values of the portfolio of investment properties held
by these entities.


During 2011, the resource segment generated net earnings of $123.5 million
compared with net earnings of $50.0 million in the same period of the prior
year. Net earnings in 2011 included a gain on the divestment of Breakwater of
$95.6 million and a full year of operations on the oil and gas assets in
southern Ontario acquired by Dundee Energy in June 2010. Equity earnings from
resource based investments were $34.6 million in 2011 compared with $56.5
million earned in the prior year.


At December 31, 2011, fee earning assets under management and administration had
increased to $12.3 billion, an 18% increase over $10.4 billion in fee earning
assets under management and administration at the end of the prior year. Despite
the increase, management fee revenue decreased to $33.0 million in 2011 compared
with $48.3 million in the prior year. Prior year management fees included $23.1
million of performance fee revenue. Reflecting the substantial volatility in
financial markets, there were no performance fees earned by the Corporation in
2011.


The Corporation's asset management segment includes the Corporation's direct
investment holdings and related profitability. During 2011, the Corporation
realized losses of $23.5 million from these direct investments, including fair
value impairments of $23.3 million. This resulted in net losses for the asset
management segment of $7.1 million in 2011. This compares with realized earnings
from these investments of $29.9 million in the prior year, resulting in net
earnings of $38.8 million.


Dundee Capital Markets generated earnings before taxes of $9.9 million in 2011,
a substantial decline when compared with earnings of $49.8 million in the prior
year. The decline in net earnings reflects the challenging financial markets and
business conditions that persisted globally during the latter part of 2011, and
the related impact to Dundee Capital Markets, including lower returns generated
on managed products and a significant decrease in profitability from principal
trading activity.


ABOUT THE CORPORATION

Dundee Corporation is an independent publicly traded Canadian asset management
company. The Corporation's asset management activities are focused in the areas
of the Corporation's core competencies and include real estate and
infrastructure as well as energy, resources and agriculture. Asset management
activities are carried out by Ned Goodman Investment Counsel Limited, a
registered portfolio manager and exempt market dealer across Canada and an
investment fund manager in the province of Ontario, and by DREAM, the asset
management division of Dundee Realty Corporation, a 70% owned subsidiary of the
Corporation. Asset management activities are supported by the Corporation's
ownership interest in Dundee Capital Markets Inc. Dundee Capital Markets is also
the asset manager of the Corporation's flow-through limited partnership business
carried out through the "CMP", "CDR" and "Canada Dominion Resources" brands.
Dundee Corporation also owns and manages direct investments in these core focus
areas, through ownership of both publicly listed and private companies. Real
estate operations are carried out through the Corporation's investment in Dundee
Realty Corporation, an owner, developer and manager of residential and
recreational properties in North America. Energy and resource operations include
the Corporation's ownership in Dundee Energy Limited (formerly Eurogas
Corporation), an oil and natural gas company with a mandate to create long-term
value through the development of high impact energy projects. The Corporation
also holds several other equity accounted investments in the resource sector.
Agricultural activities are carried out through a newly formed entity, Dundee
Agricultural Corporation. Dundee Agricultural Corporation acquired an 81%
interest in Blue Goose Capital Corporation, a privately-owned Canadian company
with a leading position in the organic and natural beef production markets with
operations in both British Columbia and Ontario.
Dundee (TSX:DC.PR.B)
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