Dundee Corporation Reports Second Quarter 2012 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 three and six months
ended June 30, 2012. The Corporation's unaudited condensed interim consolidated
financial statements, along with the accompanying management's discussion and
analysis, 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.dundeecorp.com.


FINANCIAL HIGHLIGHTS



--  Fee Earning Assets under Management and Administration - Fee earning
    assets under management and administration increased to $15.0 billion at
    June 30, 2012, compared with $11.7 billion at June 30, 2011 and $12.3
    billion at December 31, 2011. 
    
--  Equity Accounted Investments - Earnings from equity accounted
    investments were $11.7 million during the second quarter of 2012
    compared with $14.1 million earned during the same period of the prior
    year. At June 30, 2012, the market value of equity accounted investments
    was $599.6 million.  
    
--  Market Value of Investments - The market value of the Corporation's
    portfolio of investments, excluding equity accounted investments, was
    $1.4 billion at June 30, 2012, and included $0.8 billion in shares of
    The Bank of Nova Scotia which were received by the Corporation on its
    divestment of DundeeWealth Inc.  
    
--  Net Loss - During the second quarter, the Corporation incurred a loss of
    $16.8 million attributable to owners of the parent, representing a loss
    per share of $0.34. This compares with net earnings attributable to
    owners of the parent of $21.0 million during the same period of the
    prior year, or $0.27 per share on a fully diluted basis. Included in the
    net loss during the second quarter of 2012 is a $34.0 million loss from
    investments. 
    
--  Corporate Debt at June 30, 2012 was $508.3 million and included $265.3
    million borrowed in our real estate and resource based subsidiaries.
    

                                                                            
SECOND QUARTER 2012 SEGMENTED RESULTS OF OPERATIONS                         
                                                                            
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For the three and                          Three Months          Six Months 
six months ended June 30,                2012      2011      2012      2011 
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Net earnings (loss) before income                                           
 taxes from:                                                                
 Real estate segment                $  36,852  $ 12,926  $ 49,737  $ 24,649 
 Resource segment                       1,882     7,973     2,663    15,231 
 Agriculture segment                     (354)        -    (1,070)        - 
 Asset management segment             (30,299)   12,076     3,436    10,553 
 Capital markets segment               (5,893)    4,346    (2,128)    9,599 
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                                        2,188    37,321    52,638    60,032 
Income taxes                          (10,664)  (12,999)  (25,575)  (18,021)
Discontinued operations:                                                    
 Loss, net of taxes                         -         -         -   (20,000)
 Gain on sale of discontinued                                               
  operations, net of taxes                  -         -         -   870,828 
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Net earnings (loss) for the period  $  (8,476) $ 24,322  $ 27,063  $892,839 
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Net earnings (loss) attributable                                            
 to:                                                                        
Owners of the parent                                                        
 Continuing operations              $ (16,795) $ 21,006  $ 15,666  $ 35,170 
 Discontinued operations                    -         -         -   861,158 
Non-controlling interest                8,319     3,316    11,397    (3,489)
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                                    $  (8,476) $ 24,322  $ 27,063  $892,839 
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At June 30, 2012, fee earning assets under management and administration had
increased to $15.0 billion, representing a 28% increase over $11.7 billion in
fee earning assets under management and administration at June 30, 2011, and a
22% increase over fee earning assets under management and administration at
December 31, 2011. A significant part of this growth occurred in the real estate
asset management division, which benefited from a number of successful new
acquisitions of quality assets, including a 67% interest in the Scotia Plaza
complex, a premier office complex located in downtown Toronto. Correspondingly,
management fee revenue increased over 60% to $15.4 million in the second quarter
of 2012, compared with $9.4 million earned in the second quarter of the prior
year. 


Operating results from Dundee Realty's land and housing business were strong,
with revenue increasing 85% to $113.8 million from $61.6 million in the second
quarter of the prior year, and with a corresponding increase in contribution
margins from $12.0 million in the second quarter of 2011 to $28.5 million in the
current quarter. Real estate results in the second quarter of 2012 benefited
from first year condominium sales in two of Dundee Realty's projects in the
Toronto area. Condominium sales are dependent upon the timing of completion of
development projects and may vary significantly from period to period.


Uncertain global growth concerns in light of the ongoing Euro zone crisis,
combined with a slowing Chinese economy and unconvincing economic figures out of
the United States has eroded market confidence. These economic concerns weighed
heavily on commodity prices in particular. Reflecting these global economic
concerns, the Corporation's portfolio of securities depreciated substantially in
the second quarter of 2012. In particular, during the three months ended June
30, 2012, the Corporation realized a loss of $34.0 million in respect of its
portfolio of investments.


Echoing similar concerns, Dundee Capital Markets incurred a loss before taxes of
$5.9 million in the second quarter of 2012, compared with earnings of $4.3
million in the same quarter of the prior year. Capital markets activities in the
resource industry in particular, a core focus for the capital markets segment,
decreased significantly in the second quarter of 2012 compared with the same
period of the prior year. 


The Corporation continues to expand its portfolio of agricultural products. In
the second quarter and through its investment in Blue Goose Capital Corporation,
the Corporation acquired a rainbow trout fish farm operating as Meeker
Aquaculture on Manitoulin Island, Ontario. Established in 1986, Meeker is
currently licensed to produce approximately 1.0 million pounds of fish annually.
Included as part of the acquisition is a fish composting operation, the genesis
of which was based on unearthing an environmentally-friendly process for the
disposal of fish by-products. Current production of this organic compost,
created by mixing by-products from Ontario's fish and forestry industries, is
upwards of 40 tonnes per week.


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 Goodman Investment Counsel Inc. (formerly 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, 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 other investments in the resource sector,
several of which are equity accounted. Agricultural activities are carried out
through a newly formed entity, Dundee Agricultural Corporation. Dundee
Agricultural Corporation holds a 76% 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.
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