Apogee Silver Ltd.
TSX VENTURE : APE

Apogee Silver Ltd.

April 26, 2011 07:30 ET

Apogee Silver Enters Into Letter of Intent for Project Financing for Pulacayo Mine

TORONTO, ONTARIO--(Marketwire - April 26, 2011) -

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES

Apogee Silver Ltd. (TSX VENTURE:APE) ("Apogee" or the "Company") is pleased to announce that it has entered into a letter of intent with for the provision of a $15,000,000.00 loan facility (the "Facility") to Apogee for the development of the Pulacayo-Paca project, in the Potosi District of south west Bolivia.

The Company proposes to use the proceeds from the Facility to fund the construction and development of the Pulacayo Project. It is proposed that the Facility would be made available to Apogee in two tranches, comprised of an initial tranche of $10,000,000 and an accordion tranche of $5,000,000, and would be due and payable on or before September 28, 2012. Interest would accrue at a rate of 1.00% per month (12.68% annually) following draw down of amounts under the Facility. Outstanding amounts under the Facility would be secured against certain assets of the Company and its subsidiaries.

The Facility remains subject to a number of conditions precedent, including obtaining all necessary government approvals, including approval of the TSX Venture Exchange, execution of a definitive facility agreement, and satisfactory completion of due diligence investigations by the proposed lender.

In connection with entering into the letter of intent, the Company has agreed to pay the proposed lender a structuring fee of $25,000 and, subject to TSX Venture Exchange approval, issue 2,000,000 share purchase warrants to the proposed lender. Each warrant will entitle the lender to acquire one Apogee common share at a price of $0.40 for a period of three years from the date of issue. Each warrant and any shares issued on exercise will be subject to a statutory hold period of four months and one day.

About Apogee Silver Ltd.

Apogee is a mineral exploration and development stage company listed on the TSX Venture Exchange under the symbol APE. Apogee targets advanced silver-zinc-lead projects in South America that demonstrate potential to be developed to production. Currently its projects are located in the historic silver producing regions of southwest Bolivia and northern Chile.

Its most advanced project is the Pulacayo-Paca project in Bolivia. This project includes the property that covered the second-largest silver mine in the history of Bolivia with over 600 million ounces of past production.

Forward-Looking Information

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the ability to obtain financing, the completion of the contemplated transactions on the terms described, the future financial or operating performance of the Company, its subsidiaries and its projects, and statements regarding the development of the Pulacayo-Paca project. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or are intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information that is included herein, except in accordance with applicable securities laws.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information