Dundee Corporation Reports Third 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 for the three and nine months ended September
30, 2011. The Company's unaudited interim consolidated financial statements,
along with management's discussion and analysis have been filed on the System
for Electronic Document Analysis and Retrieval ("SEDAR") and may be viewed under
the Company's profile at www.sedar.com or the Company's website at
www.dundeecorporation.com.


FINANCIAL HIGHLIGHTS

- Net Earnings from continuing operations attributable to equity holders in the
third quarter of 2011 were $88.6 million or $1.29 per share on a fully diluted
basis. This compares to net earnings from continuing operations attributable to
equity holders of $42.9 million or $0.44 per share on a fully diluted basis
earned in the third quarter of the prior year.


- Gain on Sale of Breakwater Resources - Included in third quarter earnings is a
pre-tax gain of $95.6 million ($71.1 million after tax) from the Company's
divestment of Breakwater. 


- Gain on Sale of DundeeWealth - The Company's year to date earnings of $995.1
million or $14.12 per share on a fully diluted basis, includes a gain of $870.8
million from the Company's divestment of its interest in DundeeWealth, which was
completed during the first quarter of this year.


- Market Value of Investments - The market value of the Company's portfolio of
available-for-sale securities was $1.7 billion at September 30, 2011, and
includes shares of Scotiabank received by the Company on its divestment of
DundeeWealth. Amidst concerns of a global economic downturn, during the third
quarter, the Company's portfolio of available-for-sale securities depreciated by
$174.4 million, including $99.5 million relating to the Company's interest in
Scotiabank.


- Equity Accounted Investments - Earnings from equity accounted investments were
$15.7 million in the third quarter of this year compared with $21.5 million in
the same period of the prior year. At September 30, 2011, the market value of
these equity accounted investments was $557.9 million. 


- Fee Earning Assets under Management and Administration increased to $12.3
billion at September 30, 2011, compared with $10.4 billion at December 31, 2010
and $10.8 billion at September 30, 2010. 


- Corporate Debt at September 30, 2011 was $444.4 million and included $240.7
million borrowed in our real estate and resource based subsidiaries.


RECENT DEVELOPMENTS

Substantial Issuer Bid

On September 12, 2011, the Company launched a substantial issuer bid to purchase
for cancellation up to 10 million of its Class A Subordinate Shares for $23.75
per share. The purchase price of $23.75 per share represented a premium of
approximately 15% over the September 9, 2011 closing price of the Class A
Subordinate Shares on the TSX, the last day the Class A Subordinate Shares
traded prior to the announcement of the substantial issuer bid. The substantial
issuer bid expired on October 19, 2011, with 12.6 million shares having been
deposited. The Company 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 as of October 19, 2011. The aggregate
consideration paid for the 10 million shares purchased and cancelled was $237.5
million. The Company funded the purchase price using working capital provided
through its established credit facilities as well as the sale of certain of its
AFS securities.


Divestment of Breakwater Resources

The Company previously held a 22% interest in Breakwater Resources, a mining,
exploration and development company that produces zinc, copper, lead and gold
concentrates from mines located in Canada, Chile and Honduras. On August 31,
2011, Nyrstar NV ("Nyrstar"), a global multi-metals company, successfully
completed an all-cash offer to acquire all of the outstanding common shares of
Breakwater. Under the terms of Nyrstar's offer, shareholders of Breakwater
received $7.00 per common share and a special dividend of $0.50 per common
share, which was declared by Breakwater immediately prior to the sale to
Nyrstar. The Company received cash of approximately $155.0 million for the
divestment of its interest in Breakwater Resources, including $144.7 million
from the direct sale of its common share holdings and a $10.3 million special
dividend. 


Initial Public Offering - Dundee International Real Estate Investment Trust

During the third quarter, Dundee International REIT completed its initial public
offering of 31.1 million trust units at $10.00 per unit and $161 million 5.5%
convertible unsecured subordinate debentures due July 31, 2018. Both the trust
units and convertible unsecured subordinated debentures are listed on the TSX
and trade under the symbols "DI.UN" and "DI.DB", respectively. The Company has
invested approximately $120.4 million to acquire 12.8 million shares of Dundee
International REIT, representing a 29% equity interest. 


Dundee International REIT is a newly established real estate investment trust
formed to invest in real estate outside of Canada. It was originally founded by
Dundee Realty Corporation, and Dundee Real Estate Asset Management ("DREAM") has
been retained to act as its asset manager. Dundee International REIT has
initially invested in a portfolio of properties consisting of 292 offices,
logistics and other commercial properties, with a residential component,
comprising approximately 12.3 million square feet of commercial gross leasable
area ("GLA") located in Germany. This portfolio of properties is currently 87%
leased, with a weighted average remaining lease term of seven years.
Approximately 75% of the GLA on these properties is currently leased to Deutsche
Post, making Dundee International REIT the single largest landlord of Deutsche
Post, providing central and strategically placed locations that are difficult to
replace.


THIRD QUARTER SEGMENTED RESULTS OF OPERATIONS

The Company's real estate segment generated net earnings before income taxes of
$25.2 million during the third quarter of 2011 compared with $29.2 million
earned in the third quarter of the prior year, during which the real estate
segment had completed a significant condominium closing. Decreases in real
estate contribution margins, which are often project-driven, were partially
offset by the Company's share of improved earnings from Dundee REIT, which
increased to $4.9 million in the current quarter compared with $3.6 million
earned in the third quarter of the prior year. Also included in the real estate
segment is the Company's share of earnings from its recent investment in Dundee
International REIT of $0.8 million.


In the three months ended September 30, 2011, the resource segment incurred
operating losses of $3.0 million compared with operating earnings of $0.4
million in the same period of the prior year. Operating losses in the current
quarter reflect increased oil and gas operating costs in the peak summer
operating season following the acquisition of oil and gas assets in southern
Ontario late in the second quarter of the prior year. Equity earnings from
resource based investments were $10.1 million in the current quarter compared
with $17.9 million earned in the third quarter of the prior year.


The Company's asset management business continues to expand. Management fees
earned on asset management activities were $11.6 million in the third quarter of
2011 compared with $5.9 million earned in the same period of 2010. Ned Goodman
Investment Counsel Limited ("NGIC") earned management fees of $1.2 million in
the third quarter of the current year (three months ended September 30, 2010 -
$1.0 million). As part of the arrangement with Scotiabank, NGIC will continue to
provide sub-advisory services to certain mutual funds and other investment
products managed by DundeeWealth. Asset management revenues generated by DREAM
were $9.6 million in the third quarter of 2011 compared with $4.2 million earned
in the same period of the prior year. 


The third quarter of 2011 was marked by significant fluctuations in asset prices
and concerns that the global economic recovery remains uncertain, eroding
investor confidence. These concerns are reflected in the operating results of
Dundee Capital Markets which generated losses before taxes of $1.5 million in
the third quarter of 2011 compared with earnings of $9.9 million earned in the
third quarter of the prior year. 


ABOUT THE COMPANY

Dundee Corporation is an independent publicly traded Canadian asset management
company. The Company's asset management activities are focused in the areas of
the Company's core competencies and include real estate and infrastructure as
well as energy and resources. 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 Company. Asset management activities
are supported by the Company's 49% interest in Dundee Capital Markets Inc.
Dundee Capital Markets is also the asset manager of the Company'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
Company's investment in Dundee Realty Corporation, an owner and developer of
residential and recreational properties in North America. Energy and resource
operations include the Company's 57% investment 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 Company also holds several other equity accounted investments in the
resource sector.