DC.PR.B Dundee Corporation

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 six months ended June 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.




HIGHLIGHTS                                                                  

--  Net Earnings from continuing operations in the second quarter of 2011
    were $24.3 million or $0.27 per share on a fully diluted basis. This
    compares to net earnings from continuing operations of $36.0 million or
    $0.44 per share on a fully diluted basis earned in the second quarter of
    the prior year.
    
--  Gain on Sale of DundeeWealth - The Company's year to date earnings of
    $903.2 million or $12.66 per share on a fully diluted basis, include 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 $1.8 billion at June 30,
    2011, and includes the shares of Scotiabank received by the Company on
    its divestment of DundeeWealth. During the second quarter, the Company
    invested $97.5 million in its portfolio of available-for-sale
    securities, predominantly in the resource sector. 
    
--  Equity Accounted Investments - Earnings from equity accounted
    investments were $13.9 million in the second quarter of this year
    compared with $12.3 million in the same period of the prior year. At
    June 30, 2011, the market value of these equity accounted investments
    was $578.7 million. 
    
--  Fee Earning Assets under Management and Administration increased to
    $12.0 billion at June 30, 2011, compared with $11.1 billion at December
    31, 2010. 
    
--  Corporate Debt at June 30, 2011 was $401.3 million and included $160.0
    million drawn against the Company's corporate revolving term credit
    facility. 
    
--  Normal Course Issuer Bid - During the second quarter of 2011, the
    Company completed the purchase and cancellation of Subordinate Voting
    Shares pursuant to its normal course issuer bid arrangements. Since
    January 1, 2011, the Company has acquired 5.8 million shares pursuant to
    these arrangements at an aggregate cost of $141.6 million.



RESULTS OF OPERATIONS

The Company's real estate segment generated net earnings before income taxes of
$12.9 million during the second quarter of 2011 compared with $14.1 million
earned in the second 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 offset by the
Company's share of improved earnings from Dundee REIT, which increased to $6.1
million in the current quarter compared with $2.6 million earned in the second
quarter of the prior year.


Earnings from the Company's resource segment include a full quarter of
operations from oil and gas assets acquired in southern Ontario in June 2010. As
these assets were acquired late in the second quarter of the prior year, there
are no comparative operating amounts. In the three months ended June 30, 2011,
the resource segment incurred operating losses of $0.3 million compared with
operating losses of $4.1 million in the same period of the prior year. Improved
operating earnings were offset by a decrease in equity earnings from
resource-based investments, which were $7.7 million in the current quarter,
compared with $9.7 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 $6.0 million in the second quarter of
2011 compared with $5.5 million earned in the same period of 2010. NGIC earned
management fees of $1.4 million in the second quarter of the current year (three
months ended June 30, 2010 - $0.9 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 $3.7 million in the second quarter,
consistent with revenues earned in the same period of 2010.


Dundee Capital Markets generated earnings before taxes of $4.3 million in the
second quarter of 2011 compared with $5.4 million earned in the second quarter
of the prior year. Following the market volatility of recent years, 2010 and the
first half 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 has benefitted from this increased activity, emphasis has been
placed on strengthening and broadening competencies within its areas of focus,
in anticipation of a more specialized entrepreneurial firm, with carefully
selected core strengths. These initiatives are reflected in increased selling,
general and administrative costs during the current quarter compared with the
same period of the prior year. 


RECENT DEVELOPMENTS

All-Cash Offer for Breakwater Resources 

Dundee Corporation has entered into a lock-up agreement pursuant to which it has
agreed to tender all of its common shares in Breakwater Resources Ltd. in favour
of an all-cash offer made by Nyrstar NV for all of the issued and outstanding
shares of Breakwater. The Company expects to receive approximately $155 million
in cash as a result of the transaction, including $145 million from the sale of
its interest and a $10 million special dividend. Once the transaction has been
completed, the Company expects to record a pre-tax gain in respect of its
divestment in Breakwater of approximately $100 million. The transaction is
expected to close in the third quarter of 2011. 


Initial Public Offering - Dundee International Real Estate Investment Trust 

On August 3, 2011, Dundee International REIT completed its initial public
offering of 27 million trust units at $10.00 per unit and $140 million 5.5%
convertible unsecured subordinate debentures due July 31, 2018. 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, and DREAM has been retained to act as its asset manager. Dundee
International REIT will initially invest in a portfolio of properties consisting
of 292 office, logistics and other commercial properties, with a residential
component, comprising approximately 12.3 million square feet of commercial gross
leasable area located in Germany. Approximately 75% of the gross leasable area
on these properties is currently leased to Deutsche Post. On completion of the
acquisition of these properties, Dundee International REIT will be the single
largest landlord of Deutsche Post, providing central and strategically placed
locations that are difficult to replace. On a combined basis, Dundee Corporation
and Dundee Realty currently own 12.8 million units of Dundee International REIT,
representing a 32.2% ownership interest.


ABOUT THE COMPANY 

Dundee Corporation is an independent publicly traded Canadian asset management
company. Asset management activities are focused in the areas of the Company's
core competencies including real estate and infrastructure, resources, and
energy. Asset management activities are carried out by Ned Goodman Investment
Counsel Limited ("NGIC"), a registered portfolio manager and exempt market
dealer across Canada and an investment fund manager in the province of Ontario,
and by Dundee Real Estate Asset Management ("DREAM"), the asset management
division of Dundee Realty Corporation ("Dundee Realty"), a 70% owned subsidiary
of the Company. Asset management activities are supported by the Company's 48%
interest in Dundee Capital Markets Inc. ("Dundee Capital Markets"). Dundee
Capital Markets is also the manager of the 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, an owner and developer of residential and
recreational properties in North America. Resource investments are managed
through Dundee Resources Limited ("Dundee Resources"), a wholly owned subsidiary
of the Company, and 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. Dundee Resources also manages several other equity accounted
investments.

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