Apogee Minerals Enters Into Joint Venture Agreement on the Santa Isabel Silver-Lead-Zinc Project in Bolivia

Toronto, Ontario, October 6, 2004: Apogee Minerals Ltd. (TSX.V: APE), through its Bolivian subsidiary, has entered into a joint venture agreement on the Santa Isabel silverlead-zinc mineralized system in Bolivia. The mines at Santa Isabel have been exploited historically for silver since the Spanish occupation of Bolivia in the middle of the 16th Century. They are in a similar geological environment to the San Cristobol Deposit(silver) owned by Apex Silver Inc and which is a better known Bolivian example of this mineralization style.

The Santa Isabel project is a 200 hectare mining concession located in the San Antonio de Lipez District, Potosi Department, near the border with Argentina. Apogee has the right to earn a 95% interest in the project with staged cash payments and expenditure commitments, together with the issue of shares. To earn a 51% interest in the project, Apogee must make cash payments totaling US$1,070,000, with US$60,000 due on signature, US$60,000 after 6 months, US$190,000 after 12 months (of which US$50,000 can be satisfied through the issuance of common shares at the Company’s election), US$310,000 after 24 months (of which US$100,000 can be satisfied through the issuance of common shares at the Company’s election) and US$450,000 after 36 months (of which US$200,000 can be satisfied through the issuance of common shares at the Company’s election); together with the issue of 50,000 shares on signature and 50,000 shares after 6 months. Minimum work expenditures on the property are US$250,000 in year one, US$500,000 in year two and US$1,000,000 in year three. Apogee can then earn an
additional 44% in the 4th year with the payment of an additional US$1,000,000 and work expenditure of US$1,000,000.

The owner of the Santa Isabel project has a debt with the Bolivian Government’s mineral exploration department that has been estimated at US$1.25 million. This debt is payable from production and Apogee has the right to deduct any payments from the required exploration expenditures detailed above. Apogee has been advised by its counsel in Bolivia that the owner of Santa Isabel has a strong case for the debt to be forgiven, as the agreement with the government states that the debt would only be payable if the study completed by the government (some 20 years ago) resulted in a profitable operating mine, which at the time was not the case.

Apogee believes that this prospect represents a large mineralized system with the potential to contain substantial silver-gold, lead and zinc deposits that have been inadequately explored by modern exploration techniques. Bolivia, historically, has a favorable mining culture and tax regulations, mining law and a political climate conducive to foreign exploration and mining companies.

The agreement to acquire the Santa Isabel project, including the issuance of any common shares and cash payments, is subject to regulatory approval.

Apogee Minerals Ltd. is a Canadian exploration and development company listed on the TSX Venture Exchange under the symbol “APE”.

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”.

For further information contact:
Tony Wonnacott
Corporate Secretary
(416) 861-5879