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Apogee Intersects High Grade Silver at Paca Open Pit Target Drilling continues to confirm potential for resource

TORONTO, ON July 31, 2006 Apogee Minerals Ltd. (TSX Venture Exchange: APE) has received the final results from the Phase I surface drilling program at the Paca Silver-Zinc Open Pit Target. High grade silver mineralization has been intersected in several holes within broad zones of zinc and lead mineralization. From its Phase I drilling program at the Pulacayo-Paca Project, the company is awaiting only the results of four underground holes at Pulacayo.

Apogee Vice President, Exploration Doug Currie commented: “We continue to be extremely excited by the results we have received from the drilling at Paca. Together with the underground sampling at Esmeralda, our work has confirmed the combination of high grades and broad zones of mineralization at shallow depths shown in the historical drill results. Following the completion of the Phase I program we are beginning to see some potential that the geology could be somewhat more complex than originally anticipated. We view this as a positive development, possibly increasing the ultimate size potential of the mineralized resource.”

Significant results include thick zones of silver, zinc and lead mineralization containing high grade silver intersections (Tables 1, 2; Figures 1, 2):

Results received from the first two drillholes, PND-031 and PND-032, announced in a Press Release dated May 1, 2006, included 32.0m averaging 308g/t silver (10 oz/t), 0.76% lead and 0.42% zinc, including 3.0m @ 644g/t silver (20.7 oz/t), 0.64% Pb, 0.22% Zn and, 23.5m averaging 89.3g/t silver, 1.00% lead and 2.00% zinc in drillhole PND-031 (Tables 1, 2; Figures 1, 2).

These results have confirmed the broad zones of high grade mineralization previously reported in historical drilling by joint venture partner, Apex Silver Mines Limited (AMEX:SIL) and continue to provide management with confidence in its ability to define a silver-zinc-lead resource. An accelerated resource definition drill program of approximately 7500m, designed to take the project through to a mineral resource by the end of the year, will commence immediately.

Apogee has completed a total of 2301.5m (23 drillholes, PND-031 – PND-053, Table 1) of surface diamond drilling in the Phase 1 exploration program at the Paca project which commenced in December upon signature of the formal agreement with Apex Silver. The initial drill program was designed to twin 2002 drillholes completed by Apex Silver to verify the integrity of previous drill results, to infill between drillholes to confirm the geological interpretation and continuity of mineralization between holes and, beneath or along strike from previous intersections to extend potential resource blocks where no drilling exists.

Historical exploration at Paca by Apex Silver in 2002 included 3,448 m of diamond drilling and 896 m of Reverse- Circulation (RC) drilling. Some of the more significant assays reported in an Apex Silver Press Release dated October 23, 2002 are listed in Table 2, Apogee Press Release September 13, 2005 and include:

(*All intercepts reported as True Widths)

Apogee has also completed sampling of the historical Esmeralda Exploration Adit. As reported in Apogee Press Release dated May 1, 2006, sampling has outlined substantial mineralized zones, with individual continuous channel sample lengths averaging up to 406g/t silver (13 oz/t), 1.56% lead, 1.19% zinc over 16m, 126g/t silver (4.1oz/t), 0.98% lead, 0.89% zinc over 50m and, 287g/t silver (9.22oz/t), 1.05% lead and 1.11% zinc over 55m.

Previous interpretation of geological mapping and historical drilling by Apex Silver indicated that mineralization reported was predominantly “mantos-style” within a shallow, flat-lying sedimentary unit which overlies a subvertical brecciated “feeder” zone related to an andesite intrusive dome. Mineralization within the “mantos” is dominantly high grade silver, with weaker lead and zinc values; mineralization in the “feeder” zones generally has higher grade lead and zinc values than in the mantos, with narrow, moderate to high grade, silver values.

Apogee geologists now believe that the geology of the Paca mineralized zone is more complicated than originally interpreted, with potential for feeder-style mineralization being more widespread than originally thought and for additional zones of flat lying mantos-style mineralization at depth within the sedimentary unit.

Apogee will commence a follow-up infill and extensional preliminary resource definition drill program and has two diamond drills on site. The program will comprise approximately 5000-7500m of diamond drilling. It is anticipated that an initial mineral resource will be calculated before the end of the year.

History of Pulacayo-Paca Silver Mines

The Pulacayo-Paca project is located in southwestern Bolivia near the city of Uyuni, 460km south of La Paz, Bolivia, in the historical San Cristobal-Potosi Silver Belt, a wide, well mineralized zone of significant historical silver producers, including the three largest silver deposits in Bolivian history (Potosi, San Cristobal, and Pulacayo).

Discovered in 1883, the Pulacayo Silver Mine was the second largest silver mine in Bolivia after Cerro Rico de Potosi and one of the most important in Latin America, having produced over 600 million ounces of silver, 180,000 tonnes of zinc, and 180,000 tonnes of lead from 1883 to 1959 (ref. Sergeomin – Bulletin No 30, 2002). Production has been mainly from the non-outcropping Tajo vein system which was exploited to a depth of 1000 meters and averaged 30 ounces per tonne of silver over a strike length of 2500 meters. Revenue from the mine funded the first railway line to Bolivia, which connected the mine to the port of Antofagasta, Chile in 1888. The project is located 45 km by gravel road from the city of Uyuni which is connected by highway and railway to the sea port of Antofagasta, Chile. The site contains all necessary services: power, water and an experienced labour force from the surrounding village of Pulacayo.

The Paca project is located approximately 5km north of the Pulacayo mine and town site. Only minimal historical mining has occurred at Paca.

Apogee entered into a joint venture agreement with Apex Silver late in 2005 which allows Apogee to earn a 60% interest in the property by spending US$1.0million on exploration, including US$250,000 during the first six months, and completing a Feasibility Study during a three year Earn-in Period; Apex Silver have an option to increase its interest to 60% by funding development to production (see Press Release dated September 15, 2005).

Building A Premier Emerging Silver Producer

Apogee Minerals Ltd. is a Canadian exploration and development company listed on the TSX Venture Exchange under the symbol APE. The company is focused on advanced Silver-Zinc projects in South America that demonstrate the potential to receive capital investment and be rapidly developed to production. Currently all of its projects are located in the historic silver producing regions of central and southwest Bolivia.

This press release is available on the company’s official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com/ir/apogee. Alternatively, investors are asked to email all questions and correspondence to APE@agoracom.com where they can also request addition to the Apogee Minerals investor email list to receive all future press releases and updates directly.

For further information contact:
John Carlesso
President and C.E.O.
(416) 861-5881

Regulatory Footnotes:

Mr. Douglas A. Currie, MAusIMM, Apogee’s Vice President-Exploration, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and is responsible for reviewing the technical disclosure in this press release.

All analytical work has been completed by ALS Chemex of North Vancouver, BC, Canada; ALS Chemex is a respected international analytical service which is accredited with NATA and complies with standards of ISO 9001:2000 and ISO 17025:1999. They employ a variety of international standards for quality control purposes.

Samples are transported from field projects to the ALS Chemex sample preparation facility in Oruru, Bolivia, by Company personnel or a reputable commercial carrier. All analytical testing is performed utilizing a variety of industry standard analytical techniques, including: (i) ALS Analytical Code ME-MS41 – 50 element analysis using aquaregia digest and ICPAES analysis, (ii) ALS Analytical Code AA46 & AA62 – specific element analysis using aquaregia digest and AAS determination (Ag, Zn, Pb, Cu, As) and, (iii) Analytical Code Au-AA26 – Gold using a 50g Fire Assay-AAS finish.

All diamond drill core is geologically logged, cut in half using a diamond saw and sampled in one(1) meter sample intervals by Company geologists; the archive portion of the sample is securely stored at each project site. The Company has initiated a QA/QC program consisting of utilizing standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis.

Trench samples are chip-channel samples taken over a 5-10cm wide channel cut in the bottom of an excavated trench. Sample intervals are normally 2m composites in zones of alteration or mineralization and 5m composites through unaltered selvedges. Underground samples are generally taken as 1m horizontal chip-channel samples cut in the wall or roof of the adit.
Statements in this release that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual developments or results may vary materially from those in these “forward-looking statements”.

To view Table 1 PACA DRILL HOLE CO-ORDINATES and Table 2 PACA DRILL RESULTS: www.prophecycoal.com/apogee/pdf/jan12_2006_table1_2.pdf