Apogee Silver Provides Update to Its Toll Milling Program at Its Pulacayo Project in Bolivia and Issues Final Payment to Acquire Cachinal Property in Chile

TORONTO, ONTARIO--(Marketwire - July 16, 2012) - Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) is pleased to announce that it commenced shipment of stockpiled mineralized material from its 100% controlled Pulacayo project (the "Project") in Bolivia to Tatasi for milling and processing. The Company has secured a toll milling agreement with the Tatasi Cooperative, who operate the concentrator which has the capacity to process up to 200 tonnes of ore per day. Further, the Company has obtained the required sign-off from COMIBOL (Corporacíon Minera de Bolivia) to transport mineralized material to the Tatasi concentrator. To date, Apogee has stockpiled 7,000 tonnes of mineralized material from its trial mining operations.

Commenting on these recent developments, Neil Ringdahl, the Chief Executive Officer of the Company, stated, "We are delighted by our progress and COMIBOL's endorsement of our planned milling activities. This is a positive indication of the high level of support Apogee has from the affected communities and stakeholders at Pulacayo. In addition, we look forward to developing a similarly positive relationship with the Tatasi community."

Apogee holds the necessary environmental permits issued by the Bolivian authorities to conduct mining and processing operations up to 200 tonnes per day, which includes the transport of mineralized material to an established concentrator outside the Project area. The Company plans to process stockpiled mineralized material into the 4^th calendar quarter of 2012, at which point the Company anticipates that its feasibility study will be completed.

In addition, Apogee has completed the acquisition of the Cachinal silver property, located in Chile (See Press Release dated September 16, 2011) and has issued the remaining payment to Valencia Ventures Inc. ("Valencia"). In accordance with the terms of the agreement entered into with Valencia, the Company has acquired all of the issued and outstanding common shares of Compania Minera Valencia Ventures - Chile Limitada, Valencia's wholly-owned subsidiary that holds an 80% interest in Cachinal and the Nueva Juncal silver properties. In consideration, Apogee has paid Valencia $500,000 in cash ($325,170 of which had already been paid) and has issued 3,000,000 common shares of the Company to Valencia.

While the Company remains focused on developing its flagship Pulacayo silver property in Bolivia, management believes the completion of the acquisition of the Cachinal property is an important milestone for the Company which may result in further resource growth and development in the future.

Quality Control

The Company employs a quality assurance/quality control protocol on all aspects of the diamond drilling, sampling and analytical procedures. The quality control is carried out under the supervision of Chris Collins, P. Geo. a qualified person as defined by NI 43-101. The scientific and technical information presented in the press release has been reviewed and approved by Chris Collins, P. Geo., President of Apogee, and a qualified person, as defined by NI 43-101. For detailed project information please refer to Apogee's web site at www.apogeesilver.com.

About Apogee Silver Ltd

Apogee Silver Ltd. 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. Upon completion of the acquisition of the Cachinal property, there are 298,066,809 common shares of Apogee issued and outstanding.

Its most advanced project is the 100% controlled Pulacayo-Paca project in Bolivia. This project includes the property that covered the second-largest silver mine in the history of Bolivia with a historical estimate of over 600 million ounces of past production.

Cautionary Note Regarding 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 anticipated timing of the feasibility study and the mineral resource estimate, the potential effect of the toll milling and trial mining process and impact upon the future development of the property, the potential of the Cachinal property, the future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Pulacayo-Paca project, the anticipated timing with respect to completion of the diamond drill program, the current drill program, anticipated timing with respect to the trial mining program and statements regarding exploration prospects. 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 state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is 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, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although 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 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, except in accordance with applicable securities laws.

On Behalf of the Board,

Neil T. Ringdahl, Chief Executive Officer

To view Figure 1 - Bolivia and Chile Project Locations, please visit the following link: http://media3.marketwire.com/docs/ApogeeFigure1.pdf.