Apogee Phase I Shows High Values of Silver, Zinc, Indium

Santa IsabelDrill Core Returns8m of 204 g/t Silver, 13% Z inc, 63 g/t Indium, 4% Lead

Company Plans $3,000,000 Private Placement

Toronto, Ontario, January 1 8,2005: Apogee Minerals Ltd. (TSX Venture :APE) has received initial results from its Phase I Exploration program at the Santa Isabel property in south western Bolivia(see Press Release dated December 3, 2004). ThePhase I program consists of three components: detailed geological mapping, with emphasis on identifying structural controls to the mineralization and identification of new alteration and mineralization, re- sampling existing mineralized drill core and anom alous trenches to verify previous results, and confirmatory diamond drilling.

Apogee has received results from the re – sampling of core drilled by Samex Mining Corp. in 1998, and from surface sampling taken on a recent fi eld visit. Both the re- sampling an d surface sampling returned very positive results for Silver, Zinc, Lead, and Indium .Indium is most frequently associated with Zinc, and is used in applications such as bearing alloys, transistors inmicroprocessors, thermistors intemperature sensors, and in display technology such as x – rays and flat – screen televisions.

Apogee President and CEO John Carlesso commented: “We are very pleased with the results we have received so far from the Phase I program. The confirmation of the high Silver- Zinc- Lead values in the Samex data, combined with highly mineralized surface samples provide us with a level of confidence in the potential for the large mineralized system identified at Santa Isabel. The presence of Indium is also a wel come addition to the general potential of the target areas.”

The Santa Isabel Project is located in southwestern Bolivia, approximately 1050 km from La Paz, within the San Antonio de Lipez District, Potosi Department, near the border with Argentina. The property is comprised of one 200ha block and Apogee Minerals have reached an agreement with the owner to acquire up to a 95% interest in the property through exploration expenditures and cash and share payments over a four year period (see Press Release dated Oct. 6, 2004). Samex MiningCorp. drilled 23 diamond drill holes totaling 7241m on the property from 1996 –1998, primarily targeting copper- gold porphyry targets. Figure 1 below shows the location of the Santa Isabel property.

Highlights from the Santa Isabel drill core re -sam pled by Apogee include:

• Hole SI-96-1returned 8.0m of 204.9 g/t Ag, 13.76% Zn, 4.05 Pb,and54.98g/t In
• Hole SI-98-18 returned 8.0 m of 10.09 g/t Ag, 1.74% Zn, 0.16% Pb, and 7.12g/t In
• Hole SI-98-21 returned 5.0 m of 96.56 g/t Ag, 5.05% Zn, 1.11% Pb,and25.97g/tIn

The objective of the re- sampling was to study the internal composition of some large intervals (2 –5 m) of the sampling completed by Samex and to validate the existing database. A group of intervals from three drill holes representing both barren and mineralized core was selected. The Apogee results show a good correspondence between both sets and demonstrate the validity of the Samex database, which will now be included in planning the next phase of drilling at Santa Isabel. Table 1 below shows the drill results of the re- sampling received by Apogeeand highlights comparable mineralized inter cepts with the Samex drill results. Table 2 below shows the drill results received by Samex Mining Corp.

Results were also obtained from 11 surface samples taken during a recent fi el dvisit to Santa Isabel by Mr Douglas Currie, MAusIMM, Q.P.,Gwynva Resources Management Inc(see Press Release dated December 3, 2004). These samples were preferentially selected to evaluate the visu ally mineralized mine dump spoils, veins and wall rock adjacent to the veins, within road cuts and trenches. The results of these samples are very encouraging. High Silver values were obtained in all samples, with a maximum of 877 g/t Ag from a mine dump at the Socavon Real. Generally all samples were anomalous to highly mineralized in Zinc(maximum 23.9%Zn), Lead (maximum 28.7%Pb) and Indium (maximum 56.6 g/t In). Table 3 shows the complete results for all surface samples obtained at Santa Isabel.

The results from both the re- sampling of the Samex drill holes and the surface samples have given the company the confidence to use these mineralized intercepts in planning its ongoing exploration drill program at the project. The next phase will focus on defining the strike extent of the Consuelito and Vera cruz vein systems intersected by the Samex drilling, as well as testing of additional, parallel vein systems which were not drilled by Samex.

Apogee also undertook 1000 m of new diamond drilling as partof the Phase I program at Santa Isabel. This drilling was recently completed and core samples have been sent to the laboratory for analysis. Results are expected in the coming weeks.

Geological work on the Santa Isabel Project has been planned and perf ormed under the supervision of Mr Douglas Currie, MAusIMM, Q.P. of Gwynva Resources Management Inc. Surface samples referred to above were collected by Mr Currie and are described fully in a NI 43- 101 compliant technical report summarizing historical exploration activities entitled “ TECHNICAL REPORT No GRM- 04- 106, PRELIMINARY ASSESSMENT SANTA ISABEL PROJECT SAN ANTONIO DE LIPEZ, BOLIVIA” which will be lodged on Sedar separately and will also be available on the Apogee website at www.apogeeminerals.com. Mr Ricardo Valls, P. Geo., Valls Geoconsultant, has prepared Quality Assurance and Quality Control procedures for the sampling and analysis for both the historical Samex drill core and the recently completed drilling, including a routine of blank,duplicate and standard samples, and has supervised the drill program and sampling of historical and current drill core.

All anal y tical work has been completed by ALS Chemex of North Vancouver, BC, Canada. A suite of 30 elements was analyzed using aqua regia digest and ICPAES analysis (ALS Analytical Code ME – MS41). Any samples exceeding threshold limits were re- analyzed using the most appropriate technique: silver, zinc and lead – agua regia digestion, AAS finish (ALS Analytical Code AA46), gold –30g fire assay with AAS finish (ALS Analytical Code AA25).

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.

The Company plans to raise up to $3,000,000 by way of a non – brokered private placement through the issuance of Units priced at $0.40. Each Unit will consist of one common share and one half common share purchase warrant. Each whole warrant will entitle the holder to purchase one common share at the price of $0.60 for a period of eighteen months from the closing date. The private placement offering 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 state ments” 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:
John Carlesso
President and C.E.O.
(416) 861- 5881

Figure 1

To view Table 1 APOGEE RE-SAMPLING OF SAMEX DRILL CORE and Table 2 SAMEX DRILL HOLE SAMPLES and Table 3 Rock Chip Samples Santa Isabel Project: http://www.prophecycoal.com/apogee/pdf/jan18_2005_tb_APOGEE_RE-SAMPLING_OF_SAMEX_DRILL_CORE.pdf