Apogee Reports Assays from Oxide Drilling Program at Pulacayo Including 30 Meters Grading 129.0 g/t Silver, and 26 Meters Grading 68.7 g/t Silver

January 30, 2012, Toronto, Ontario –Apogee Silver Ltd. (“Apogee” or the “Company”) (TSX Venture Exchange: APE) is pleased to report assay results from 21 diamond drill holes of the silver oxide program at Pulacayo. (See Table 1 and Figures 1-4 below). The drilling program was undertaken to delineate near surface silver oxide resources above the sulphide resources at Pulacayo. All of the holes were drilled from surface.

A few highlights from the first set of drilling results from the program include:

• 11PUD220 intersected 20.8 meters grading 79.3 g/t silver, from 35.2 to 56 meters and 9.0 meters grading 119.7 g/t Ag, from 80 to 89.0 meters.
• 11PUD221 intersected 30.0 meters grading 129.0 g/t silver from 37.0 to 67.0 meters.
• 11PUD233 intersected 9.0 meters grading 130 g/t silver from 20.0 to 29.0 meters, and 6.0 meters grading 186.7 g/t silver from 104.0 to 110.0 meters.
• 11PUD239 intersected 19.0 meters grading 67.2 g/t silver from 71.0 to 90.0 meters.
• 11PUD240 intersected 23.0 meters grading 50.20 g/t silver from 31.0 to 54.0 meters, including 6.0 meters grading 109.3 g/t silver from 48.0 to 54.0 meters.

The silver oxide drilling program was initiated following successful metallurgical testing on composite samples from existing drill core at Pulacayo. The metallurgical tests were designed to determine silver mineralogy in the oxide zone and its amenability to recovery by conventional cyanide leaching. Seventy-two hour leach tests with various reagent additions indicated that silver dissolutions of 77% to 81% can be achieved. (See Press Release dated August 3rd, 2011).

Chris Collins, P. Geo., President of Apogee, states, “We are very excited by the first set of assay results from the silver oxide diamond drilling program at Pulacayo. These results confirm that the extensive silver lead zinc mineralization associated with the main Veto Tajo Structure at the Pulacayo Deposit continues through the oxide zone to the surface. These results coupled withpositive results from oxide zone metallurgical testing undertaken last year offer excellent potential for a significant increase in silver ounces in resources at Pulacayo with the addition of oxide zone mineralization. A further potential benefit is that oxide zone mineralization would generally be amenable to lower cost mining and leaching methods.”

Table 1 Summary of Significant Drill Hole Intervals

* True widths of the intersections listed above are estimated to range between 80% and 95% of the core lengths provided in the table above.
** Indicates an interval adjacent to historical mine workings. Bold Intervals are interpreted to represent the Veta Tajo Structure.

The silver oxide drilling program was carried out between August and December 2011 and totaled 6,250 meters in 45 drill holes. The assay results from the remaining 24 holes of the
program are pending. In addition to the drill results 727 samples were collected from the oxide zone in 20 diamond drill holes undertaken during the previous sulphide drill programs at Pulacayo which had not been previously sampled, and 250 surface channel samples were collected from trenching programs undertaken during the fall of 2011. Analyses from all these
samples are also pending and all results will be released as available. It is expected all of this data will be incorporated into a NI 43-101 independent mineral resource estimate of silver oxide resources at Pulacayo, which is expected to be completed during the second quarter of 2012.

The completion of the oxide drilling program in December 2011 marked the successful completion of all the surface drilling initiatives Apogee had planned for 2011. In all, between
both the sulphide resource expansion and oxide zone programs, approximately 29,000 meters were drilled during 2011. Apogee currently has one underground drill operating on the
property in support of the trial mining initiatives.

Quality Control

The Company employs a quality assurance/quality control protocol on all aspects of the diamond drilling, sampling and analytical procedures. The quality control and all aspects of the exploration program are supervised by Apogee’s Exploration Manager Mr. Hernan Uribe, who holds a Masters of Applied Science in Mineral Exploration from the Imperial College of Science And Technology, Royal School of Mines, London, England. The scientific and technical information presented in the press release has been reviewed and approved by Chris Collins, P. Geo., President of Apogee and a qualified person, as defined by NI 43-101.

For more detailed project information please refer to Apogee’s web site at www.apogeesilver.com.

About Apogee Silver Ltd

Apogee Silver Ltd. is a mineral exploration and development stage company listed on the TSX Venture Exchange under the symbol APE. Apogee targets advanced silver-zinc-lead projects in South America that demonstrate potential to be developed to production. Currently its projects are located in the historic silver producing regions of southwest Bolivia and northern Chile.

Its most advanced project is the 100% owned Pulacayo-Paca project in Bolivia, This project includes the property that covered the second-largest silver mine in the history of Bolivia with over 600 million ounces of past production.

For Further Information Contact:

Marilia Bento, Vice President Corporate Development: +1 (416) 309-2694
Email: info@apogeesilver.com

G. Scott Paterson, Chairman of the Board: +1 (416) 368-6464
Email: info@apogeesilver.com
Web: www.apogeesilver.com

Cautionary Note Regarding Forward-Looking Information. This press release contains “forward looking information” within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Pulacayo-Paca project, the anticipated timing with respect to completion of the diamond drill program, the current drill program, anticipated timing with respect to the trial mining program and statements regarding exploration prospects. Generally, forward looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws

On Behalf of the Board,
G. Scott Paterson, Chairman

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Figure 1: Pulacayo Project Location Map.