Apogee to Acquire the Balance of its Chilean Venture

TORONTO, ONTARIO — (MARKET WIRE) — 09/16/11 — Apogee Silver Ltd. (“Apogee” or the “Company”) (TSX VENTURE: APE) provides the following update with respect to its agreement with Valencia Ventures Inc. (“Valencia”). Further to previous news releases issued by the Company (October 5, 2009 and December 21, 2010), the parties have now agreed that Apogee will purchase all of Valencia’s participating interest in Compania Minera Valencia Ventures – Chile Limitada (“Compania Minera”). Compania Minera holds Valencia’s entire 80% participation interest in each of the Cachinal Property and the Nueva Juncal Silver Property, both located in northern Chile, (Figure 1), for an aggregate purchase price of $500,000 in cash and 3,000,000 common shares of Apogee.

Cachinal Property

The Cachinal property is an advanced silver property hosting mineral resources supported by a Technical Report that is compliant with the requirements of Canadian National Instrument NI 43-101, filed by Apogee on February 9, 2010. The resource contains 18.41 million ounces of silver in the indicated resource category and an additional 3.02 million ounces of silver in the inferred resource category (see table below and refer to technical report filed on SEDAR). The Cachinal deposit is a low-sulfidation epithermal system which has had past production of 32 million ounces of silver. Apogee believes there is good potential to expand the estimated resource.

Table 1 Mineral Resource Statement for the Cachinal Silver Deposit, Chile, SRK Consulting, March 4, 2008. (Sections 1250NNW – 1000SE)—————————————————————————- Grades Contained Metal ———————————————— GoldResource Quantity Silver Gold Zinc Silver (000′ ZincClassification (1) (Mt) (g/t) (g/t) (%) (M Oz.) Oz.) (M lbs)—————————————————————————-Indicated—————————————————————————- Open Cast (2) 5.50 99 0.13 0.21 17.49 23.00 25.97—————————————————————————- Underground (3) 0.15 188 0.21 0.52 0.92 1.02 1.75—————————————————————————- Total 5.66 101 0.13 0.22 18.41 24.03 27.72—————————————————————————-Inferred—————————————————————————- Open Cast (2) 0.45 61 0.07 0.13 0.88 1.01 1.26—————————————————————————- Underground (3) 0.37 180 0.19 0.34 2.14 2.25 2.77—————————————————————————- Total 0.82 115 0.12 0.22 3.02 3.26 4.03—————————————————————————-1. Mineral resources are not mineral reserves and have not demonstrated economic viability. All figures have been rounded to reflect the relative accuracy of the estimates. The cut-off grades are based on metal price assumptions of US$12.50 per ounce of silver, US$650 per ounce of gold and metallurgical recoveries of eighty-five percent for silver and gold. Zinc does not contribute to revenue.2. Reported at a cut-off of 40 g/t Ag Eq. to a vertical depth of 150 meters below surface.3. Reported at a cut-off of 150 g/t Ag Eq. below a vertical depth of 150 meters.

Nueva Juncal Property

The Nueva Juncal property comprises seven Exploitation Mining Concessions totaling 2,100 ha, held in the name of Minera Silver Standard Chile Ltda (Figure1, Figure 2, Table 2). Valencia entered into an agreement with Silver Standard Resources Inc. in October 2007 to acquire an 80% interest in the property; and a Definitive Agreement, signed April 30, 2008, required Valencia to spend a total of US$1.0 million over four years, with a minimum expenditure of $200,000 during the first 12 months of the agreement. Expenditures to the end of October 2008, totalling approximately US$ 590,000, satisfied the initial expenditure commitment.

The Nuevo Juncal Silver Project, is situated within the zone of overlap between the rich El Penon-Guanaco Epithermal Gold-Silver Belt and the prolific Porphyry Copper Belt of northern Chile. At Juncal, historical mining since the late 1800’s has focussed on two east-west trending structures, the Juncal Norte and Juncal Sur veins, which extend over a strike length of at least 2,500m. These structures have been exploited to depths of approximately 100-150m by numerous shafts and two modern declines. Production records are non-existent; however, historical reports cite grades as high as 600g/t silver, with values up to 7.4 % lead and ranging from 10-18% zinc. There has been no systematic drilling recorded on the property.

Completion of the acquisition remains subject to receipt of regulatory approvals, including the approval of the TSX Venture Exchange. The acquisition is a non-arm’s length transaction for the purposes of the TSX Venture Exchange as Apogee and Valencia have a common director, Mr. Stan Bharti.

The scientific and technical information presented in this press release has been reviewed and approved by Chris Collins, P.Geo, President of Apogee Silver and a qualified person as defined by NI 43-101.

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.

Apogee’s 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.

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 acquisition of the Cachinal and Juncal silver properties, 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 current drill 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,

Neil T. Ringdahl, CEO

Table 2 Nueva Juncal Property Summary—————————————————————————-Concession Owner Area (ha) Type—————————————————————————-Barbara 1, 1-60 Silver Standard 300 Exploitation—————————————————————————-Barbara 2, 1-30 Silver Standard 300 Exploitation—————————————————————————-Barbara 3, 1-60 Silver Standard 300 Exploitation—————————————————————————-Barbara 5, 1-30 Silver Standard 300 Exploitation—————————————————————————-Barbara 6, 1-30 Silver Standard 300 Exploitation—————————————————————————-Barbara 7, 1-30 Silver Standard 300 Exploitation—————————————————————————-Barbara 4, 1-60 Silver Standard 300 Exploitation—————————————————————————- Total 2100—————————————————————————-

To view “Figure 1 Location and Regional Setting Cachinal and Juncal Projects” and “Figure 2 Nueva Juncal Concession Map”, please visit the following link: www.prophecycoal.com/apogee/pdf/apogee916_rev_figures.pdf.

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

Contacts:Apogee Silver Ltd.Marilia BentoVice President Corporate Development+1 (416) 309-2694info@apogeesilver.comApogee Silver Ltd.Neil T. RingdahlCEO of the Board+1 (416) 309 4291info@apogeesilver.comwww.apogeesilver.com

Source: Apogee Silver Ltd.