Apogee Silver Announces 106% Increase in Indicated Silver Resources at Its Pulacayo Silver-Lead-Zinc Deposit

Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) is pleased to
report the results of a National Instrument 43-101 compliant independent mineral
resource estimate on the Pulacayo Deposit located in southwestern Bolivia
(Figure 1), which includes a total of 60.3 million ounces of silver in the
Indicated category and a total of 9.2 million ounces of silver in the Inferred
category, as detailed in Table 1 below. 


This mineral resource estimate represents an increase in silver in the Indicated
resource category of 106% or 30.9 million ounces from the mineral resource
estimate dated October 19th, 2011 and supported in the NI 43-101 Technical
Report dated May 23rd, 2012 and filed under the Company's profile on SEDAR (See
Press Releases dated October 18th, 2011, and May 23rd, 2012). This increase is
comprised of a 45% increase in the Indicated category from underground sulphide
resources, with an additional 13.2 million ounces of silver from 6.19 million
tonnes grading 213.6 grams/tonne silver, 0.86% lead and 1.74% zinc. It also
includes an additional 4.63 million ounces of silver in the Indicated category
from the oxide zone at Pulacayo, with 1.5 million tonnes grading 95.9 g/t silver
and 13.17 million ounces of silver in the Indicated category from open pit
sulphide resources with 9.28 million tonnes grading 44.1 grams/tonne silver,
0.66% lead and 1.32% zinc. 


Neil Ringdahl, Chief Executive Officer, commented that "The new resource
estimate continues to demonstrate our confidence in the development strategy for
the Pulacayo polymetallic deposit. We look forward to the completion of the
feasibility study before the end of 2012 which will provide the road map for the
next phase of development of the company's flagship asset."


Chris Collins, P. Geo, President commented, "We are particularly encouraged by
the increase in silver ounces reported in the Indicated category from the
underground sulphide zone. This is due to increased confidence in the detailed
geological model as well as an enhanced understanding of the historical mining
at Pulacayo developed from the knowledge gained from the engineering initiatives
associated with trial mining and the ongoing feasibility study. Further, the
disclosure of the oxide and sulphide resources from a potential open pit at
Pulacayo is also a very important milestone for the company and we are now ready
to proceed to the next stage in evaluating the potential for integrating these
resources into the Pulacayo development plan." 




                        Table 1: Summary of Mineral Resources               
                  Pulacayo Deposit effective date September 28, 2012        
                                                                            
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                                                                   Pb     Zn
                                                            Ag    (M.    (M.
Resource Class      Type     TonnesAg g/t Pb % Zn %       (Oz)  lbs.)  lbs.)
----------------------------------------------------------------------------
  Combined Open Pit and Underground Resources including Oxide and Sulphide  
                                    Zones                                   
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   Open Pit Resources (Base case 42 degrees Average Pit Wall Slope Angle)  
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Open Pit                                                                    
 Indicated         Oxide  1,500,000  95.9 0.96 0.13  4,626,000              
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Open Pit                                                                    
 Inferred          Oxide    248,000  71.2 0.55 0.31    569,000              
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Open Pit                                                                    
 Indicated      Sulphide  9,283,000  44.1 0.66 1.32 13,168,000  135.9 269.54
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Open Pit                                                                    
 Inferred       Sulphide  2,572,000  33.4 0.92 1.36  2,765,000  51.99  76.88
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Waste Rock               71,679,000                      Strip Ratio 5.3 : 1
----------------------------------------------------------------------------
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  Underground Resources (all blocks below 4159 m ASL with NSR greater than 
                                   $US 58 )                                 
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Underground     Sulphide  6,197,000 213.6 0.86 1.74 42,547,000  117.5 237.72
                                                                            
Indicated                                                                   
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Underground                                                                 
 Inferred       Sulphide    943,000 193.1 0.43 1.61  5,853,000   8.94  43.47
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total            Oxide +                                                    
 Indicated      Sulphide 16,980,000 110.5 0.74 1.49 60,341,000  253.4 507.26
----------------------------------------------------------------------------
                 Oxide +                                                    
Total Inferred  Sulphide  3,763,000  75.9 0.79 1.43  9,187,000  60.93 120.35
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NOTES                                                                       
      1.  Tonnages have been rounded to the nearest 1,000 tonnes. Average   
          grades may not sum due to rounding.                               
      2.  Metal prices used were $25.00 USD/Oz silver, $0.89USD/lb lead, and
          $1.00 USD/lb zinc. Lead and zinc do not contribute to revenue in  
          the oxide zone.                                                   
      3.  Open Pit Sulphide Resources are reported a $13.20 USD NSR cut-off.
          Underground Sulphide Resources are reported at a $58USD NSR cut-  
          off. Open Pit oxide resources are reported at a $US 23.10         
          revenue/tonne cut-off.                                            
      4.   Contributing 1.0 meter assay composites were capped at 1500 g/t  
          Ag, 15% Pb, and 15% Zn.                                           
      5.  Specific gravity is based on an interpolated inverse distance     
          squared model.                                                    
      6.  Mineral resources that are not mineral reserves do not have       
          demonstrated economic viability. The estimate of mineral resources
          may be materially affected by environmental permitting, legal,    
          title, taxation, sociopolitical, marketing, or other relevant     
          issues.                                                           



The Pulacayo Deposit was the second largest silver mine in the history of
Bolivia with historical estimates of over 600 million ounces past production of
silver. The extent of the known mineralization at Pulacayo is based on the
extent of the known workings which occur over a strike length of approximately
2.7 kilometers and to a vertical depth of approximately 1 kilometer from
surface. To date the Company has systematically drilled approximately 1.5
kilometers of the known strike extent and to a vertical depth of approximately
600 meters from surface (Figure 2). The Pulacayo resources remain open for
further expansion at depth and along strike. Apogee is currently focused on the
completion of the feasibility study on the development of an integrated
underground mine and processing plant at Pulacayo which is scheduled for
completion by December 2012 (See Press Release dated May 29, 2012). 


Resource Estimate Details:

This updated Mineral Resource Estimation was completed by Mercator Geological
Services Limited (Mercator) of Dartmouth, Nova Scotia in accordance with
Canadian Securities Administrators National Instrument ("NI 43-101") and is
based on CIM standards. The effective date of this mineral resource estimate is
September 28, 2012.


The estimate is based on validated results of 69,739 meters of diamond drilling
and 606.34 meters of surface trenching carried out by Apogee Silver through
various programs between 2006 and 2012. This includes 226 surface drill holes,
42 underground drill holes, and 6 surface trenches. Modeling was performed using
Gemcom Surpac(R) 6.3 modeling software with silver, lead and zinc grades
estimated independently by inverse distance squared (ID2) interpolation from 1.0
meter down hole assay composites capped at 1500 g/t, 15%, and 15% respectively.
Block size was 5 meters (x) by 3 meters (y) by 3 meters (z) with one unit of
standard sub-blocking allowed. Block model results were checked using ordinary
Kriging and Nearest Neighbour interpolation methods.


Sectional interpretations were developed correlating zones of veining with
higher grade mineralization for each metal and were subsequently wire-framed
into three-dimensional solid models. A total of 9 domains were created for each
metal, ranging from a few meters to tens of meters in thickness, within a strike
length of 1,500 meters oriented at 280 degrees and 600 meter sub-vertical dip
extent. A peripheral wireframe was developed enveloping all metal domains and a
digital terrain model of the oxide-sulphide zone boundary was created. 


Grade interpolation was first performed for each metal within the respective
metal domain wireframes using multiple search ellipsoids that accommodated the
local variations in mineralization trends. Interpolation was subsequently
performed for each metal outside the respective metal domain wireframes and
within the peripheral constraining envelop using similar search ellipsoid
orientation parameters. Contributing 1 meter down-hole composites were
constrained to a minimum of 2 and a maximum of 9 with no more than 3 from a
single drill hole. The oxide-sulphide zone digital terrain model functioned as a
hard boundary in all interpolation passes.


A specific gravity model was interpolated by ID2 methodology from 1.0 meter down
hole specific gravity composites using the grade interpolation parameters for
each metal. 


Indicated Resources are all interpolated blocks with at least 7 contributing
assay composites with a maximum average distance of 70 meters, with the nearest
contributing composite at 60 meters or less. Inferred Resources are all other
interpolated blocks within the peripheral constraint. An upgraded model of the
historic underground mining and stoping was digitally compiled from the archived
mine engineering plans and was used to remove the previously mined blocks from
the resource model.


Net Smelter Return (NSR) values for the blocks occurring within the sulphide
zone were determined by means of a net smelter calculator developed for the
Pulacayo Deposit by John Starkey, P. Eng., of Starkey & Associates Inc.,
Consulting Metallurgical Engineers of Oakville Ontario. The modeling used a 36
month trailing average silver price of $25.00 USD/oz. The base metal prices used
in the modeling were $0.89 USD/lb lead and $1.00 USD/lb zinc. The base metal
prices were supplied by Exen Consulting Ltd. of Oakville, Ontario and are based
upon the average long-term analyst lead and zinc price projections from a number
of metal broker and mining investment banking sources. Exen Consulting Ltd. is
in the commercial concentrate marketing business providing consulting services
to mine producers, metal traders and smelters around the world. 


Open pit resources to an elevation of 4,159m ASL (top of crown pillar) were
determined within a Whittle optimized maximum NPV pit shell utilizing $1.80
USD/tonne mining cost, $1.60 USD/tonne surface haulage cost, $2.50 USD /tonne
G&A, and $19.0 USD/tonne and $9.10 USD/tonne respectively for oxide and sulphide
processing costs. Pit slopes varied from 42 to 43 degrees. In the pit
optimization process, only silver derived NSR values were used in the oxides,
while silver, lead and zinc derived NSR values were used in the sulphides.


The Company expects to file the full NI 43-101 compliant technical report on the
Pulacayo Deposit describing in detail, among other things, the resource
estimate, QA/QC, database validation and geologic model, by November 12, 2012.


Independent Qualified Persons:

Peter Webster P. Geo. and Michael Cullen M .Sc. P. Geo. of Mercator Geological
Services Limited are independent Qualified Persons, as defined in NI 43-101 who
are responsible for the Mineral Resources Estimate and have reviewed and
approved the mineral resource estimate section of this press release. 


Eugene Puritch P. Eng. of P & E Mining Consultants Incorporated is an
independent Qualified Person as defined in NI 43-101 and is responsible for the
Open Pit Optimization and has reviewed and approved the scientific and
disclosure of this news release as it related to the open pit optimization. 


Net Smelter Return

Net Smelter Return is the calculated potential revenue which is returned from
the smelter for the sale of concentrate products. The NSR method recognizes that
more than 1 metal, (i.e. Ag, Pb, Zn,) can contribute to a potential revenue
stream. It proceeds to derive a potential revenue value that accounts for such
items as recovery to concentrate, metal prices, payable fractions of the metals
treatment, and refining charges, penalties, freight and handling. By this means
in situ grades can be converted to potential revenues, with the cut-off grade
being the estimated cost of all activities related to mining, mineral processing
and general administration. 


Quality Control

Apogee Silver employs a QA/QC protocol on all aspects of its diamond drill core
processing and analytical procedures. Core samples are sawn and one half of the
NQ and/or HQ core is returned to the core box for future reference with the
other half sent for analysis. Sample preparation is completed at the ALS Chemex
preparation laboratory in Oruro, Bolivia and analysis occurs at the ALS Chemex
laboratory in Lima, Peru. 


The company's quality control protocol includes the insertion of certified
geological standards which have been purchased from Canadian Resource
Laboratories of Langley, British Columbia. Standards are inserted at a frequency
of 1 in every 20 samples. The company also inserts geological blanks which are
blind to the laboratory at a frequency of 1 in every 20 samples. Duplicates are
taken at every sub-sampling stage in the preparation process. Field duplicates
are taken at a frequency of 1 every 50 samples. Sample preparation duplicates
are taken at the crushing and pulverizing stages at a frequency of 1 in every 20
samples. Cross-check analysis on the master pulps is undertaken at a second
laboratory for 5% of all samples. The company uses SGS Mineral Services in Lima,
Peru for the second lab cross check analysis.


The Quality Control and all aspects of the exploration program are directed
under the supervision of Mr. Chris Collins, P. Geo. and President of Apogee. 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. 


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.


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 mineral resource estimates, mineral prices,
exploration and development timetables and budgets, permitting and future
production scenario's. 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 Ringdahl                                     G. Scott Paterson         
Chief Executive Officer                           Chairman                  



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