New Metallurgical Tests by Apogee on Leachable Silver in the Oxide Layer Demonstrate Recoveries Up to 81%

TORONTO, ONTARIO–(Marketwire – Aug. 3, 2011) – Apogee Silver Ltd. (“Apogee” or the “Company”) (TSX VENTURE:APE) reports recoveries from new metallurgical test work in the oxide layer at the Pulacayo deposit in southwest Bolivia.

Results from metallurgical test work undertaken on a sample composited from silver mineralized drill hole intervals located in the oxide zone above the current resources at Pulacayo were received during July. The objective of the test work was 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.

Neil Ringdahl, C.E.O. of Apogee states, “This exciting development opens an additional opportunity to explore the largely untested, near-surface silver oxide potential at Pulacayo, and its potential inclusion in the resource could contribute significantly toward our resource ounces. Mineralization in this zone would also be amenable to extraction by low-cost open pit mining methods. Together with the resources at the nearby Paca deposit, the option of bringing in open pit mining and a second oxide stream of production to complement the planned underground sulphide production becomes more attractive.

The company intends to fast-track the exploration of this potential resource in order for the results to be included in the feasibility study due next year, which considers a multi-million-ounce-per-year operation scheduled for 2014. The release of an updated National Instrument 43-101 (“NI 43-101″) remains on plan for Q4 2011, and a second resource update considering the potential oxide mineralization is expected in Q2, 2012.”

A silver-oxide focused diamond drilling program is scheduled to commence immediately upon completion of the 23,000m sulphide drilling program in August 2011. A program of trenching, sampling and mapping has been ongoing since late June 2011 to assist in drill hole targeting for the oxide program. An initial phase totalling approximately 3,000 meters of drilling is planned.

The metallurgical test work was undertaken at ED & ED Ingenieria y Servicios S.A.C. of Lima Peru, under the supervision of John Grewar, Apogee’s consulting metallurgist. Determination of the ore mineralogy in the tests indicated that the silver occurs as free electrum particles of approximately 50 micron in length, and more of these particles are exposed by milling the product to minus 75 micron.

The composite sample was collected from silver mineralized structures that are interpreted to represent ancillary structures or branches off the main Veta Tajo (vein) structure. The Veta Tajo structure hosts all of the current and most of the historical mineral resources at Pulacayo. In all the holes drilled to date the target has been sulphide mineralization in the Veta Tajo structure below the oxide zone and as such the structure remains virtually untested where it is projected to occur within the oxide layer. Based on the existing drill-hole information the oxide layer at Pulacayo is interpreted to extend to depths of between 60 to 120 meters from surface.

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 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.

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 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,

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

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

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

Source: Apogee Silver Ltd.