Timmins - Montana - Mexico

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Message: NR 1st Q results..no mention of cost/oz or $$

NR 1st Q results..no mention of cost/oz or $$

posted on Feb 02, 2010 10:00AM

Apol lo Gold Reports 4

th Qtr Gold Product ion of

17,850 ounces;

Black Fox Mine Achieves 2,000 tpd Product ion Rate

Denver, Colorado – January 28, 2009 –

Apollo Gold Corporation (“Apollo” or “the Company”) (TSX: APG;

NYSE Amex: AGT) reports that its wholly owned and operated Black Fox Mine and mill (“Black Fox”)

achieved the previously stated production goal of processing 2,000 tonnes per day (“tpd”), ahead of the original

year-end schedule, for a mill throughput average of 2,040 tpd of ore during the fourth quarter ended December

31, 2009 (“4Q 2009”), for production of 15,820 ounces (“oz”) of gold in 4Q 2009.

The Company’s total gold production for the fourth quarter totaled 17,850 oz of gold, including 2,031 oz

produced from lower grade Black Fox ore toll milled at a nearby processing facility. For 2009, from

commencement of production at Black Fox in late May until the end of 2009, the Company’s total production

was 52,961 oz of gold, with 47,430 oz from the Black Fox Mill, which is located approximately 30 km (19

miles) west of the Black Fox Mine and the remaining 5,531 oz from toll milling. The Company sold 21,124 oz

of gold in 4Q 2009; all of which was sold against the forward sales contracts at a realized price of $875 per oz.

Production from Black Fox in the third quarter of 2009 (“3Q 2009”) was 23,250 oz with 19,750 ounces

produced at the Black Fox Mill and the remaining from the toll milling arrangement. Gold production was lower

in the fourth quarter largely due to a 30% decrease in the average gold head grade to 2.85 grams per tonne

(“gpt”) at the mill compared to the third quarter, partially offset by a 17% quarter-over-quarter increase in

tonnes milled to 187,600 tonnes in 4Q 2009. The recovery rate decreased slightly to 92% due to the lower grade


Notes: 1. Tonnes above are rounded to the thousand.

2. Recovery is rounded to the whole number.

3. Production commenced in late May 2009.

R. David Russell, President and Chief Executive Officer of Apollo, said, “Black Fox reached its steady state of

production of 2,000 tpd during 4Q 2009 and the mill ramp up has proceeded very well. We are also continuing

to improve upon the ore grade control programs first implemented in August 2009. 2010 marks the first full


year of production, and we are hopeful that some of the start-up operational issues in 2009 should improve as we

progress towards our goal of producing 100,000 oz of gold from Black Fox in 2010.”

In addition to the gold production from the Black Fox Mill, as shown in Table One above, Apollo also

transported low grade ore from Black Fox for toll milling at St Andrew Goldfields’ (“SAS”) Holt mill, located

approximately 50 km (31 miles) east of the Black Fox Mine. As was previously announced on September 9,

2009, Apollo entered into an agreement with SAS to toll mill approximately 100,000 tonnes of Apollo’s Black

Fox ore at SAS’s Holt mill. Under the toll agreement, 2,031 oz of gold were produced for Apollo in 4Q 2009.

The Company will report its 4Q 2009 and full year 2009 financial results, including total cash costs, by March

16, 2010.

Capital Program Update

The new conveyor associated with the new crusher scalping circuit, including the high pressure screening, was

substantially complete by the end of 2009 and was commissioned in January 2010. The system will improve

crusher capacity by removing approximately 30% of crusher feed as fines, ahead of the crushing circuit and

thereby, reduce operating costs. Further, completion of the water management holding facility is also expected

in this first quarter of 2010. The water management system increases efficiency by separating water from

tailings, which provides greater capacity in the tailings impoundment sufficient for the current life of mine.

Apollo Gold

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