Apollo Gold Corporation

Apollo Gold Corporation

March 16, 2005 23:00 ET

Apollo Gold Updates Proven and Probable Ore Reserves




MARCH 16, 2005 - 23:00 ET

Apollo Gold Updates Proven and Probable Ore Reserves

DENVER--(CCNMatthews - Mar 16, 2005) -

Apollo Gold Corporation (Apollo or the Company) (AMEX:AGT) (TSX:APG) is
pleased to provide an update to the proven and probable reserves of the
Company. Updates to the reserves of the Company's U.S. operations are
provided at this time with an update to the Black Fox Project proven and
probable reserves expected in the second half of 2005. The reserves were
estimated using a gold price of US$375 per ounce and have been audited
by Mine Development Associates (MDA) of Reno, Nevada.

Proven and Probable Reserves - Gold Ounces (Audited)

Ounces of Gold December 31, 2004 December 31, 2003 Increase
Black Fox Project 457,100(a) 457,100 0
Montana Tunnels 643,800 692,500 (48,700)
Florida Canyon 263,600 374,393 (110,793)
Standard Mine Project 442,400 404,100 38,300
Apollo Gold - Total 1,806,900 1,928,093 (121,193)

(a) Not updated at this time -- Unchanged from December 31, 2003 -- Gold
price US$350/oz

R. David Russell, President and CEO of Apollo, commenting on the gold
reserves for the Company, stated: "Our goal is to continue the
successful conversion of the mineralized material into gold reserves.
Although we have conducted extensive drilling during 2004 (84,000
meters) at Black Fox we will only update the ore reserves as part of the
feasibility study which will be completed later in 2005. I expect the
reserve conversion for Black Fox to be significant and add to the
Company's overall ore reserve portfolio."

Apollo owns or controls all areas associated with the stated reserves
and has received permits or is in the process of obtaining permits for
all of the stated reserves. The company expects to receive required
permits on a timely basis.

Black Fox Project

Gold reserves for Apollo's Black Fox Project near Timmins, Ontario,
Canada, were not updated from the previous year since the Company is
currently working on a feasibility study for the project. The study is
expected to be completed later this year at which time a new reserve
estimate which will include the underground mineralization will be

The original Canadian National Instrument 43-101 (NI 43-101) Standards
of Disclosure for Mineral Projects report was filed by the Company for
the Black Fox project on March 25, 2004.

Black Fox Proven and Probable Reserves (As of December 31, 2003, and
Based on Technical Report filed March 25, 2004) -- Open Pit Mine of
2,953,000 tonnes (3,255,092 tons) with a grade of 4.81 grams Au/tonne
(0.140 oz Au/ton) and 457,100 ounces of gold have been developed for the
project. Additional mineralized material is estimated to contain
1,441,900 tonnes (1,586,090 tons) with a grade of 4.78 grams Au/tonne
(0.14 oz Au/ton) at this time. All proven and probable reserves as well
as mineralized material estimates have been high grade capped at 120 gm
Au/tonne (3.5 oz Au/ton).

As of December 31, 2003, a total of 11,050,000 tonnes (12,180,000 tons)
of alluvium pre-strip material and 44,048,000 tonnes (48,554,500 tons)
of rock waste material would be mined out in the current proposed open
pit configuration. The mine strip ratio would be approximately 14.9
tonnes of rock waste for every 1 tonne of ore (SR 14.9:1).

The design mining rate for the proposed open pit mine would be 1,500
tonnes of ore per day for more than five years. Annual gold production
could average approximately 81,000 ounces over the life of the open pit
mine. The proposed open-pit plan would involve owner mining and toll
milling for the life of the open-pit mine. If additional reserves are
developed, the company would also propose to develop an underground mine
with a mill and tailing impoundment facility on site. The company
considers the open-pit a stand alone project on an interim mining
possibility that demonstrates positive economics and justifies
continuing with further studies and permitting. The open pit reserves as
of December 31, 2003, are based on a cut-off gold price of US$350/ounce.
The feasibility study and the updated ore reserve summary will use
US$375/ounce of gold. An updated NI 43-101 report will also be filed as
required at this time.

Montana Tunnels

Proven and probable reserves for Montana Tunnels Mining, Inc. near
Helena, Montana, are 37,073,200 tonnes (40,865,800 tons) with a grade of
0.55 gm Au/tonne (0.016 oz Au/ton) for a total of 643,800 ounces of
gold. These reserves are contained in the existing and proposed pit
expansions for the project. Apollo owns all of the land associated with
all of the proven and probable reserves listed for the Montana Tunnels
Mine. The reserves are based on a cut-off gold price of US$375/ounce.
The proven and probable reserves also contain a significant amount of
other precious and base metals. There are approximately 8,990,500 ounces
of silver, 147,116,900 pounds of lead and 465,870,000 pounds of zinc
contained in the reserves.

Included in this year's reserves update are 402,900 ounces of gold
contained in the M-pit expansion. In 2004 the permitting program
progressed to the stage that Apollo has a high degree of confidence that
the needed permits, including an Environmental Impact Statement, will be
obtained on a timely basis. Although there is no assurance that such
permits will in fact be obtained, Apollo has included the M-pit in the
probable reserve category. Further information on the Montana Tunnels
mine can be found in the technical report filed last year by the Company
on March 25, 2004.

Florida Canyon

The proven and probable reserves are 15,233,900 tonnes (16,792,400 tons)
with a grade of 0.538 gm Au/tonne (0.016 oz Au/ton) for approximately
263,600 ounces of gold. These reserves are based on reverse circulation
(RC) drilling, sampling, modeling, as well as historic reserve
reconciliation to previous models. The Florida Canyon mine has been in
production for 16 years and has produced over 1.4 million ounces of
gold. The reserves are based on a cut-off gold price of US$375/ounce. A
revised NI 43-101 for the Florida Canyon mine will be submitted to and
filed on SEDAR by April 15, 2005.

Standard Gold Mine Project

The Standard Gold Mine project is approximately five miles south of the
Florida Canyon mine. The mine is currently in the pre-production phase
and is expected to reach production in the second quarter of 2005. The
proven and probable gold reserves for the project are listed as
23,365,600 tonnes (25,755,900 tons) with a grade of 0.589 gm/tonne
(0.017 oz Au/ton) for 442,400 oz of gold. These reserves are based on
92,092 meters (302,063 feet) of RC drilling. Additional reserves of
3,605,800 ounces of silver are also contained in the reserve estimate.
The mine is a heap leach oxide gold project similar to the Florida
Canyon mine that was used as the cost model for the project. All
material is planned to be run of mine (RoM) material placed directly on
the heap leach pad with no crushing. The Standard Mine has an overall
strip ratio of 1.33 tonnes of waste for every 1 tonne of ore (SR
1.33:1). The reserves are based on a cut-off gold price of US$375/ounce.
A revised NI 43-101 for the Standard Gold Mine will be submitted and
filed on SEDAR by April 15, 2005.

This press release has been reviewed and approved for release by Richard
Nanna, Professional Geologist, and the Company's Vice-President,
Exploration and designated "Qualified Person" under NI 43-101.

Neil Prenn, P.E. President and Principal Engineer of Mine Development
Associates (MDA), is a "qualified person" within the meaning of NI
43-101 Standards for disclosure for mineral promulgation by the Canadian
Minister of Finance, has reviewed this press release for accuracy and
completeness and has confirmed that the information relating to minerals
contained in this news release were derived from the technical report.
The required updated technical reports will be filed on SEDAR and other
public forums as required by U.S. and Canadian regulations by April 15,

About Apollo Gold

Apollo Gold is a gold mining company with operating mines in Nevada and
Montana and an advanced stage development project, Black Fox, along the
productive Destor-Porcupine Fault east of the Timmins Gold Camp in
Ontario, Canada. Apollo has also recently started the Huizopa
exploration project in the Sierra Madre Mountains of Mexico. Gold
production in 2004 from the Company's three currently operating mines
totaled 106,000 ounces of gold production with by-products of silver,
lead and zinc. The production targets for 2005 range from 122,000 to
151,000 ounces of gold production as well as by-product metal as in
2004. The Black Fox project could be in production in early 2007 if the
feasibility study is successful and necessary financing is obtained.
Production at the Black Fox project envisions an open pit as well as an
underground mine and milling facility.

Forward-Looking Statements

This press release includes certain "forward-looking statements" within
the meaning of section 21E of the United States Securities Exchange Act
of 1934, as amended. All statements regarding potential mineralization,
reserves, exploration results, construction and completion, and
production dates and amounts, and future plans and objectives of Apollo
Gold, are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from these
forward-looking statements include: the results of independent Canadian
NI 43-101 reports, the outcome of assays and additional exploration
sampling and drilling efforts, delay in permits or approvals, technical,
permitting, mining, or processing issues, the availability of funding on
acceptable terms for the future exploration and development of Apollo
Gold mines and projects, and other factors disclosed under the heading
"Risk Factors" and elsewhere in Apollo Gold documents filed from time to
time with the Toronto Stock Exchange, The American Stock Exchange, The
United States Securities and Exchange Commission and other regulatory


Contact Information