Apogee Silver Ltd.
TSX VENTURE : APE

Apogee Silver Ltd.

May 25, 2011 08:00 ET

Apogee Silver Receives Approval of Its Environmental Mining Permit for Pulacayo Silver Deposit

TORONTO, ONTARIO--(Marketwire - May 25, 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") has been awarded an environmental licence by the Bolivian authorities sanctioning mining operations at its Pulacayo project. The permit (Certificado de dispensación Categoria 3 para exploración y actividades mineras menores/EMAP) allows for underground exploration and trial mining up to 200 tonnes per day as specified in the original application and represents Apogee's first milestone in the development of its 100% owned Pulacayo mine in southern Bolivia. The Company views this development as a strong vote of support by the Bolivian government in Apogee's ability to explore and operate in Bolivia, given its strong ties with the Pulacayo Mining Cooperative and the community.

The Company intends to initiate production by custom milling ore from the Pulacayo mine until such time as a planned 400 tonne per day pilot plant is operational which is expected in 2012. Net proceeds raised from its recently completed $25 million bought deal private placement financing (See Press Release dated May 3, 2011) will be used towards achieving the following anticipated short & medium term milestones:

  • Commence rehabilitation of the underground mine in August/September 2011;

  • commence underground mining operations in October/November 2011;

  • produce 1st ore from the underground mine in the 4th quarter 2011;

  • produce an updated resource statement in the 4th quarter 2011;

  • continue the exploration program through to year-end 2011 (originally planned for completion in July);

  • conclude the design of a 400tpd pilot concentrator plant and tailings storage facility (4th quarter 2011);

  • obtain an environmental permit for the construction & operation of a pilot concentrator at Pulacayo (2nd quarter 2012); and

  • commence with the feasibility study for a large mine in the 3rd quarter 2011 (completion in 1st half 2012).

Apogee plans to provide regular updates to this project development schedule going forward.

According to David Gower, P.Geo. and CEO of Apogee "This permit and subsequent development provides the Company with several strong advantages beyond early cash flow; it provides an opportunity to start mine development and complete studies for optimizing mining methods, the pilot plant will provide a definitive metallurgical flow sheet prior to designing the large mill and Apogee will hire and train a core work force in Bolivia that will be available to transition to full scale mining later."

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 anticipated timing and development of the Pulacayo project, future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding the development of the Pulacayo-Paca project and the ability of the Company to adhere to its anticipated project development schedule and anticipating timing and receipt of all necessary licences and permits required with respect to the Pulacayo 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.

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