Apogee Silver Provides Update to its Mine and Mill Development Program at Pulacayo

TORONTO, ONTARIO–(Marketwire – Aug. 15, 2011) –

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR DISSEMINATION IN THE UNITED STATES

Apogee Silver Ltd. (TSX VENTURE:APE) (“Apogee” or the “Company”) has awarded the EPCM (Engineering, Procurement & Construction Management) contract for a 400tpd (tonne per day) pilot concentrator at Pulacayo in Southern Bolivia to TWP Sudamerica S.A., a capable engineering firm with worldwide experience (refer to further information below).

The rehabilitation of Apogee’s Pulacayo underground mine is underway one month ahead of schedule, and is in preparation for underground mining commencing later this year. Operations are schedule to be ramped up to meet the 400tpd capacity as the Pulacayo concentrator is commissioned. The rehabilitation work and planned trial mining program is being conducted under the Company’s current “EMAP” environmental licence, which permits mining and custom milling operations for up to 200 tonnes per day. The Company is on schedule to obtain an expanded environmental permit in Q2 2012, ahead of construction of the pilot concentrator.

Neil Ringdahl, Bsc. (Eng.) Mining and CEO of Apogee, states “The construction of a 400tpd milling operation brings the company an important step closer to its goal of becoming a significant silver producer. Apogee is hiring and training a core work force in Bolivia that will be available to transition to full scale mining as the concentrator comes on line. The projected early cash flow from our wholly owned pilot concentrator will be a strong advantage that will provide further support towards building a large mine and mill on this outstanding silver resource.”

The Company is on track to achieve the following medium term objectives:

— The construction of the Pulacayo pilot concentrator and tailings storage facility (commissioning in Q4, 2012);
— Underground mining development & limited custom toll milling at Pulacayo(commencing Nov/Dec, 2011);
— Completion of oxide and resource expansion drill programs; and
— The feasibility study for a large mining and milling operation at Pulacayo-Paca.

Subsequent to completing the bought deal $25 million financing (news release dated May 3, 2011) the Company is in a solid financial position. As a result it will not complete the proposed debt facility with Sprott Resource Lending Partners (see press releases April 26, May 3, and May 6, 2011).

About Apogee Silver Ltd

Apogee 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 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.

About TWP Sudamerica S.A.

TWP Sudamerica S.A. is a wholly owned subsidiary of TWP Projects and the Basil Read Group, which is a capable international resource and infrastructure focused engineering project house with over 25 years of experience. It provides a full range of engineering, architectural, finance and project management solutions. The TWP group employs in excess of 1,000 multi-disciplinary professionals and administrative personnel around the world. The company has a project portfolio with a capital value of more than US$10-billion and has offices in South Africa, Zambia, Australia and South America. TWP Sudamerica’s Peru office employs more than 60 professionals and is completing work in Chile, Colombia, Bolivia and Peru.

TWP Weblink: http://www.twp.co.za

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 anticipated timing and development of the Pulacayo project, future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding the development of the Pulacayo-Paca project and the ability of the Company to adhere to its anticipated project development schedule and anticipating timing and receipt of all necessary licences and permits required with respect to the Pulacayo project.. 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 statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on the opinions and estimates of management as of the date such statements are made and they are 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. Although management of 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 are 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 that is included herein, except in accordance with applicable securities laws.

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

FOR FURTHER INFORMATION PLEASE CONTACT:
Apogee Silver Ltd.
Marilia Bento
Vice President Corporate Development
+1 (416) 309-2694
info@apogeesilver.com

Apogee Silver Ltd.
G. Scott Paterson
Chairman of the Board
+1 (416) 368-6464
info@apogeesilver.com
www.apogeesilver.com

Source: Apogee Silver Ltd.