<SEC-DOCUMENT>0001157523-13-004566.txt : 20131001
<SEC-HEADER>0001157523-13-004566.hdr.sgml : 20131001
<ACCEPTANCE-DATETIME>20130930213539
ACCESSION NUMBER:		0001157523-13-004566
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20130930
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20131001
DATE AS OF CHANGE:		20130930

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DGSE COMPANIES INC
		CENTRAL INDEX KEY:			0000701719
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-JEWELRY STORES [5944]
		IRS NUMBER:				880097334
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-11048
		FILM NUMBER:		131124924

	BUSINESS ADDRESS:	
		STREET 1:		15850 DALLAS PARKWAY
		STREET 2:		SUITE 140
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75248
		BUSINESS PHONE:		9725874049

	MAIL ADDRESS:	
		STREET 1:		15850 DALLAS PARKWAY
		STREET 2:		SUITE 140
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75248

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DALLAS GOLD & SILVER EXCHANGE INC /NV/
		DATE OF NAME CHANGE:	19930114

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AMERICAN PACIFIC MINT INC
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CANYON STATE CORP
		DATE OF NAME CHANGE:	19860819
</SEC-HEADER>
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<TYPE>8-K
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<DESCRIPTION>DGSE COMPANIES, INC. 8-K
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Washington, D.C.&#160;&#160;20549</font></div>

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<div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">CURRENT REPORT</font></font></div>

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<div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Date of Report</font> (Date of earliest event reported):<font style="DISPLAY: inline; FONT-WEIGHT: bold"> (September 30, 2013) </font>(September 30, 2013)</font></div>

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<div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 16pt; FONT-FAMILY: Times New Roman">DGSE COMPANIES, INC.<br>
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">(Exact name of Registrant as specified in its charter)</font></font></div>

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<td width="22%" style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1-11048</font></font></td>
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<td width="24%" style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">88-0097334</font></font></td>
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<td width="22%" style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">(Commission</font></font></td>
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<td width="24%" style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">incorporation or organization)</font></td>
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<td width="24%" style="TEXT-ALIGN: center"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt">Identification No.)</font></font></font></td>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item 8.01.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Other Events.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On September 30, 2013, DGSE Companies, Inc. (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Registrant</font>&#8221;) issued a press release announcing that the United States District Court for the Northern District of Texas (the &#8220;<font style="DISPLAY: inline; TEXT-DECORATION: underline">Court</font>&#8221;) has granted preliminary approval of the proposed settlement of class action and derivative litigation pending before the Court, in the two filed cases entitled Grant Barfuss, on behalf of himself and all others similarly situated vs. DGSE Companies, Inc.; L. S. Smith, John Benson and William Oyster (Civil Action No. 3:12-cv-3664), and Jason Farmer, Derivatively on Behalf of Nominal Defendant DGSE Companies, Inc., Plaintiff, v. William H. Oyster, James D. Clem, William Cordeiro, Craig Alan-Lee, David Rector, L. S. Smith, and John Benson, Defendants, and DGSE Companies, Inc., Nominal Defendant (Civil Action No. 3:12-cv-3850).</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The proposed settlements are subject to final approvals of the Court and require the Registrant to provide a notice to shareholders of terms of the proposed settlement by causing the notice to be filed with the Securities and Exchange Commission on a Form 8-K and posting a link to the notice on the Registrant&#8217;s investor relations website.&#160;&#160;The required notice is attached as Exhibit 99.1 hereto.</font></div>

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<td width="91%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Exhibits</font></td>
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<td width="91%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.1<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Notice of Pendency and Proposed Settlement of Shareholder Derivative Action.</font></td>
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<td width="91%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.2<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Press Release dated September 30, 2013.</font></td>
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<div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>

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<td colspan="2" width="7%"><font style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Notice of Pendency and Proposed Settlement of Shareholder Derivative Action</font></td>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">UNITED STATES DISTRICT COURT<br>
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NORTHERN DISTRICT OF TEXAS</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;Civil Action No.:&#160;&#160;3:12-CV-3850-B</font></div>
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<div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TO:</font></div>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DGSE acknowledged that DGSE&#8217;s internal controls over financial reporting were deficient.&#160;&#160;In its 2012 Form 10-K, DGSE stated: &#8220;Effective internal controls over financial reporting and disclosure controls and procedures are necessary for us to provide reliable financial reports and to detect and prevent fraud. In the past, our internal controls and procedures have failed. The remedial measures being taken by us may not be sufficient to regain the confidence of investors or any loss of reputation, which could in turn affect our finances and operations.&#8221;&#160;&#160;DGSE is dependent on not only the integrity of its financial operations, but also on the perceived integrity of the Company itself in order to attract and maintain the necessary inflows of credit for its operations.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As a result of the restatements, the New York Stock Exchange froze trading of DGSE&#8217;s stock on April 17, 2012 and stock trading did not resume until November 15, 2012.&#160;&#160;In June&#160;2012, the Company disclosed that it was being investigated by the Securities and Exchange Commission in connection with accounting irregularities.&#160;&#160;The SEC investigation is ongoing.&#160;&#160;On September 7, 2012, a class action alleging claims for violations of the securities laws was filed in this court, <font style="DISPLAY: inline; FONT-STYLE: italic">Barfuss v. DGSE Companies, Inc., et al.</font>, Civil Action No. 3:12-cv-3664 (the &#8220;Securities Class Action&#8221;).&#160;&#160;The Securities Class Action arose out of the same events as the derivative Action.</font></div>

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<div><font style="DISPLAY: inline; FONT-FAMILY: Times New Roman">&#185;</font>&#160;&#160;The capitalized terms used in this Notice and not otherwise defined are defined in the Stipulation of Settlement (the "Stipulation") dated September 16, 2013,&#160;&#160;a copy of which has been filed with the Court.</div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On September 21, 2012, plaintiff Farmer initiated the Action, on behalf of DGSE, by filing a shareholder derivative complaint in this Court, alleging claims for, <font style="DISPLAY: inline; FONT-STYLE: italic">inter alia</font>, breach of fiduciary duty under Nevada law and violations of section 14(a) of the Securities Exchange Act of 1934.&#160;&#160;The Action was initially assigned to Hon. Jorge A. Solis, but was subsequently transferred to Hon. Jane J. Boyle for coordination with the Securities Class Action arising out of the same events.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beginning in April 2013, counsel for Defendants approached Plaintiff&#8217;s Counsel about the potential resolution of this Action and the parties agreed to explore settlement by mediation of their disputes.&#160;&#160;On May 13, 2013, the parties participated in a Court ordered mediation conducted by United States Magistrate Judge Paul D. Stickney.&#160;&#160;The Mediation ultimately provided a framework for settlement of this derivative action. Plaintiff&#8217;s Counsel submitted a demand for changes to DGSE corporate governance.&#160;&#160;Thereafter, Plaintiff&#8217;s Counsel and DGSE participated in numerous rounds of negotiations, including multiple conference calls and the exchange of letters, prior to arriving at the Corporate Governance Reforms.&#160;&#160;On July 19, 2013, the Settling Parties reached final agreement on the Corporate Governance Reforms.&#160;&#160;On August 28, 2013, Plaintiff&#8217;s Counsel conducted two interviews: James D. Clem, DGSE&#8217;s Chief Operating Officer and a director of the Company, and C. Brett Burford, the Chief Financial Officer of DGSE.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TERMS OF THE SETTLEMENT</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As a result of the filing, prosecution, and settlement of the Actions, DGSE will implement and maintain the corporate governance reforms and amendments identified in Exhibit&#160;A to the Stipulation filed with the Court (the "Corporate Governance Reforms").</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Corporate Governance Reforms include, among other things, changes and improvements to the Company&#8217;s policies and procedures designed to improve the Company&#8217;s compliance with applicable laws and regulations and enhance Board oversight of the Company&#8217;s compliance function; enhanced controls and procedures; the addition of two new directors to the Company&#8217;s Board; term limits for Directors; establishment of a Lead Independent Director position; formation of a Compliance, Governance, and Nominating Committee; increased functionality of the Audit Committee and the Inventory Control Department; implementation of a Compensation Recovery Policy and modification of Executive Compensation Practices; requirements concerning Director education and establishment of a third-party Whistleblower Policy.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Settlement calls for Plaintiff (on behalf of himself, all Current DGSE shareholders and, derivatively, on behalf of DGSE) to release all Released Claims against the Released Persons, as defined in the Stipulation.&#160;&#160;The term "Released Claims" collectively means any and all claims, rights, and causes of action, whether based on federal, state, local, statutory, or common law or any other law, rule, or regulation, including Unknown Claims, that have been asserted or could have been asserted by Plaintiff or any other shareholder of DGSE derivatively on behalf of DGSE against the Released Persons in the complaints filed in the Action arising from or relating to the facts, events, transactions, acts, disclosures, statements, omissions or failures to act, or any other circumstance alleged by Plaintiff.&#160;&#160;Excluded from the term "Released Claims" are all claims alleged in the <font style="DISPLAY: inline; FONT-STYLE: italic">Barfuss</font> Securities Class Action.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PLAINTIFF&#8217;S COUNSEL'S POSITION CONCERNING SETTLEMENT</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plaintiff&#8217;s Counsel believes that the Action has substantial merit, and Plaintiff&#8217;s entry into the Stipulation is not intended to be and shall not be construed as an admission or concession concerning the relative strength or merit of the claims alleged in the Action.&#160;&#160;However, Plaintiff and Plaintiffs' Counsel recognize and acknowledge the significant risk, expense, and length of continued proceedings necessary to prosecute the Action against the Individual Defendants through trial and through possible appeals.&#160;&#160;Plaintiff's Counsel also have taken into account the uncertain outcome and the risk of any litigation, especially in complex cases such as the Action, as well as the difficulties and delays inherent in such litigation.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plaintiff's Counsel have conducted an extensive investigation including reviewing and analyzing non-public discovery documents from Defendants.&#160; Plaintiff&#8217;s Counsel also conducted extensive damages analyses and analyzed the Company&#8217;s corporate governance. As part of the Settlement process, Plaintiff&#8217;s counsel conducted the interviews of James D. Clem, DGSE&#8217;s Chief Operating Officer and a director of the Company, and C. Brett Burford, the Chief Financial Officer of DGSE.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Based on Plaintiff&#8217;s Counsel's thorough review and analysis of the relevant facts, allegations, defenses, and controlling legal principles, Plaintiff&#8217;s Counsel believe that the Settlement set forth in the Stipulation is fair, reasonable, and adequate, and confers substantial benefits upon DGSE and its shareholders.</font><br>
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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DEFENDANTS' POSITION CONCERNING SETTLEMENT</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Individual Defendants have denied and continue to deny that they have committed, threatened, or attempted to commit, any violations of law, or breached any duty owed to Plaintiffs, DGSE, or its shareholders.&#160;&#160;Without admitting the validity of any allegations made in the Action, or any liability with respect thereto, the Individual Defendants have concluded that it is desirable that the claims against them be settled on the terms reflected in the Stipulation.&#160;&#160;The Individual Defendants and DGSE are entering into this Settlement because it will eliminate the uncertainty, distraction, disruption, burden, risk, and expense of further litigation.&#160;&#160;Further, the Individual Defendants and DGSE acknowledge that the Settlement confers substantial benefits on DGSE and is fair, reasonable, adequate, and in the best interests of DGSE and its shareholders.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Plaintiff&#8217;s Counsel have not received any payment for work in connection with the Action, nor been reimbursed for out-of-pocket expenses.&#160;&#160;In recognition of the substantial benefits conferred upon DGSE as a direct result of the prosecution and Settlement of the Action, DGSE and/or its insurers have agreed to pay Plaintiffs' attorneys' fees and expenses that have been incurred or will be incurred in connection with the Action in the amount of $300,000, subject to Court approval (the "Fee and Expense Amount").</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In addition, Plaintiffs' Counsel may apply to the Court for a service award of $2,500 for Plaintiff Farmer only to be paid upon Court approval, in recognition of Plaintiff&#8217;s participation and effort in the prosecution of the Action (the "Service Award").&#160;&#160;The Service Award, if approved by the Court, shall be paid to Plaintiff Farmer from the Fee and Expense Amount awarded to Plaintiff&#8217;s Counsel.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOTICE OF HEARING ON PROPOSED SETTLEMENT</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A Settlement Hearing will be held on October 21, 2013, 2013 at 2:00 p.m., before this Court, the Honorable Jane J. Boyle, United States Courthouse, Courtroom 1306, 1100 Commerce Street, Dallas, TX 75242 (or at such a date and time as the Court may direct without further notice), for the purpose of determining: (a) whether the proposed Settlement, as set forth in the Stipulation, should be approved by the Court as fair, reasonable, and adequate to DGSE and its shareholders, including Plaintiff; (b) whether the Judgment should be entered dismissing the Action with prejudice and releasing the Released Persons from the Released Claims; (c)&#160;whether the payment of Plaintiffs' Counsel's Fee and Expense Amount and Plaintiff&#8217;s Service Awards should be approved; and (d) any other matters that come before the Court.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">THE RIGHT TO BE HEARD AT THE SETTLEMENT HEARING</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any DGSE shareholder may appear and show cause, if he, she, or it has any reason why the Settlement of the Action embodied in the Stipulation should not be approved as fair, reasonable, and adequate, or why the Judgment should or should not be entered hereon, or why the Fee and Expense Amount or Plaintiffs' Service Awards should not be awarded. To object, the shareholder must: (a) file a written objection, stating the case name and number <font style="DISPLAY: inline; FONT-STYLE: italic">Farmer v. Oyster, et al.</font>, Civil Action No. 3:12-CV-3850-B,&#160;&#160;and stating all reasons for the objection; (b) give proof of current ownership of DGSE stock as well as documentary evidence of when such stock ownership was acquired; (c) clearly identify any and all evidence that would be presented at the Settlement Hearing in connection with such objections; and (d) identify any case, by name, court, and docket number, in which the objector or his attorney, if any, has objected to a settlement in the last three years.&#160;&#160;Any written objections shall be filed with Clerk of the Court <font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-STYLE: italic">at least fourteen calendar days prior to the Settlement Hearing</font>, at the below address:</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">United States Courthouse</font></div>

<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1100 Commerce Street</font></div>

<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dallas, Texas 75242</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Matthew M. Houston</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">488 Madison Avenue, 8<font style="DISPLAY: inline; FONT-SIZE: 70%; VERTICAL-ALIGN: text-top">th</font> Floor</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Timothy R. McCormick</font></div>

<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">THOMPSON &amp; KNIGHT LLP</font></div>

<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">1722 Routh Street, Suite 1500</font></div>

<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Dallas, Texas 75201</font></div>

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<div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: right"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit 99.1</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DALLAS--(BUSINESS WIRE)--September 30, 2013--DGSE Companies, Inc. (NYSE MKT: DGSE), a leading wholesaler and retailer of jewelry, diamonds, fine watches, and precious metal bullion and rare coin products (the &#8220;Company&#8221;), announced today that the United States District Court for the Northern District of Texas has granted preliminary approval of the previously announced proposed settlement of class action and derivative litigation relating to the Company&#8217;s previously disclosed accounting irregularities and subsequent restatement of financial results.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The proposed settlements will resolve all issues which are pending before the United States District Court for the Northern District of Texas, in the two filed cases entitled Grant Barfuss, on behalf of himself and all others similarly situated vs. DGSE Companies, Inc.; L. S. Smith, John Benson and William Oyster (Civil Action No. 3:12-cv-3664), and Jason Farmer, Derivatively on Behalf of Nominal Defendant DGSE Companies, Inc., Plaintiff, v. William H. Oyster, James D. Clem, William Cordeiro, Craig Alan-Lee, David Rector, L. S. Smith, and John Benson, Defendants, and DGSE Companies, Inc., Nominal Defendant (Civil Action No. 3:12-cv-3850).</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The proposed settlements are subject to final approvals of the District Court and require the Company to provide a notice to shareholders of terms of the proposed settlement by causing the notice to be filed with the Securities and Exchange Commission on a Form 8-K and posting a link to the notice on the Company&#8217;s investor relations website. The notice may be found at <font style="TEXT-DECORATION: underline">www.dgsecompanies.com</font>/stockholdernotice.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As previously disclosed, the defendants have agreed to pay $2 million to resolve all claims in both suits (including obligations to pay attorneys&#8217; fees). The Company has also incurred some additional fees and expenses associated with finalizing the settlement. It is expected that approximately 90% of the total settlement amount and related expenses will be paid from insurance proceeds.</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;I&#8217;m very excited to be one step closer to resolving both of these suits, and we are hopeful that the federal court will give its final approval to both settlements,&#8221; stated James Vierling, Chief Executive Officer and Chairman of the Board. &#8220;A final resolution will allow DGSE to concentrate its resources on issues that will provide shareholders additional value.&#8221;</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DGSE Companies, Inc. wholesales and retails jewelry, diamonds, fine watches, and precious metal bullion and rare coin products through its Bullion Express, Charleston Gold &amp; Diamond Exchange, Dallas Gold &amp; Silver Exchange, and Southern Bullion Coin &amp; Jewelry operations. DGSE also owns Fairchild International, Inc., one of the largest vintage watch wholesalers in the country. In addition to its retail facilities in Alabama, Florida, Georgia, Illinois, South Carolina, Tennessee and Texas, the Company operates internet websites which can be accessed at <font style="TEXT-DECORATION: underline">www.bullionexpress.com</font>, <font style="TEXT-DECORATION: underline">www.dgse.com</font>, <font style="TEXT-DECORATION: underline">www.cgdeinc.com</font>, and <font style="TEXT-DECORATION: underline">www.sbcoin.com</font>. Real-time price quotations and real-time order execution in precious metals are provided on another DGSE website at <font style="TEXT-DECORATION: underline">www.USBullionExchange.com</font>. Wholesale customers can access the full vintage watch inventory through the restricted site at <font style="TEXT-DECORATION: underline">www.FairchildWatches.com</font>. The Company is headquartered in Dallas, Texas and its common stock trades on the NYSE MKT exchange under the symbol "DGSE."</font></div>

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<div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This press release includes statements which may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, failure of the District Court to grant final approval of the proposed settlement, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.</font></div>

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