Apollo Gold Corporation
AMEX : AGT
TSX : APG

Apollo Gold Corporation

January 11, 2006 15:06 ET

CORRECTING and REPLACING Apollo Gold Announces Substitution of Black Fox for US$10.9 Million Cash Collateral as Security for Series B Convertible Debentures Issued on November 4, 2004

DENVER, COLORADO--(CCNMatthews - Jan. 11, 2006) - The following corrects and replaces the release sent on Jan. 9, 2006 at 0711 ET. The ticker symbols for the release should read (TSX:APG)(AMEX:AGT). The complete and corrected release follows.

APOLLO GOLD ANNOUNCES SUBSTITUTION OF BLACK FOX FOR US$10.9 MILLION CASH COLLATERAL AS SECURITY FOR SERIES B CONVERTIBLE DEBENTURES ISSUED ON NOVEMBER 4, 2004

DENVER, COLORADO--(CCNMatthews - Jan. 11, 2006) - Apollo Gold Corporation ("Apollo" or the "Company") (TSX:APG)(AMEX:AGT) announced today that the Company has pledged the Black Fox property as substitute collateral for the Company's US$8.73 million principal amount Series B Convertible Debentures issued on November 4, 2004, which were previously secured by US$10.9 million cash. In connection with this transaction, Apollo used approximately US$2.6 million of the cash to release an existing mortgage over the Black Fox property, thereby resulting in approximately US$8.5 million cash being available to Apollo, less expenses incurred for the transaction.

In consideration for the debenture holders' agreement to substitute the Black Fox property for the cash collateral, Apollo reduced the exercise price of 5,013,600 of the warrants attached to the Series B Debentures from US$0.80 per share to US$0.40 per share. The reduction in the exercise price is effective January 16, 2006, and applies to all warrants attached to the Series B Debentures except for those held by the Company's insiders, which remain exercisable at US$.80 per share. All other terms related to the Series B Debentures, including the conversion price, remain the same.

Apollo Gold Corporation

Apollo Gold is a gold mining company with a operating mine in Montana, the Black Fox advanced stage development project in Ontario, Canada, and the Huizopa Project an early stage exploration project in the Sierra Madre Gold Belt in Chihuahua, Mexico.

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