Apogee Silver Ltd.
TSX VENTURE : APE

Apogee Silver Ltd.

April 15, 2011 08:39 ET

Apogee Silver Responds to Reports of Possible "Recovery" of Certain Bolivian Mines

TORONTO, ONTARIO--(Marketwire - April 15, 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") wishes to respond to recent reports that, subject to union demands, certain silver, zinc, lead and tin mines currently operated by foreign companies may be "recovered" by the Bolivian state. A spokesman for COMIBOL, the Corp. Minera de Bolivia, was quoted as saying the government may issue a decree on May 1, 2011 in this regard.

Apogee understands that several unions operating at foreign controlled mines have communicated with the government that they oppose any "recovery" of such mines by the government. Apogee believes that remuneration and employment standards are generally high at these operations.

The Pulacayo mine, in the Potosi region of southwest Bolivia, is Apogee's principal asset. Apogee and the Pulacayo Mining Cooperative (which is part of FENCOMIN, the national federation of mining cooperatives) jointly hold a renewable lease until 2025 of the concessions from COMIBOL, which relationship is defined in a joint venture agreement executed in 2002. The agreement stipulates that Apogee is the financing and managing partner. In addition, a royalty is to be paid to the Pulacayo Mining Cooperative and COMIBOL under the joint venture and lease agreements respectively.

Apogee does not presently have a union at the Pulacayo mine and the Company believes it enjoys significant support from the local community, as well as the Pulacayo Mining Cooperative.

The Company does not believe at this time that it will be impacted by any "recoveries" that may or may not occur.

Apogee is continuing with its on going drilling program at Pulacayo where it presently has four diamond drills operating. As announced on April 6, 2011, Apogee expects to use the net proceeds from the bought deal private placement offering announced on such date to fund further exploration and development activities at the Pulacayo deposit, as well as to advance the Pulacayo project towards production and for general corporate purposes.

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 future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding the development of the Pulacayo-Paca project and the impacts of reported government decrees. 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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