Apogee Silver Awards Contract to Complete Feasibility Study for Pulacayo Silver Mine and Clarifies Technical Disclosure with ...

Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) awarded a
contract for the completion of a feasibility study of an underground mine and
concentrator plant at its 100% controlled Pulacayo Project to TWP Sudamerica
S.A. ("TWP").


TWP is a member of the Basil Read Group, a leading engineering and construction
company in the world, with offices across South Africa, Australia, and Peru. TWP
has established a reputation of excellence in the provision of engineering,
construction and project management services throughout the world. The
feasibility study will commence immediately and is expected to be completed by
the end of 2012. On completion of the feasibility study, a technical report in
compliance with the Canadian National Instrument 43-101 will be prepared.


The feasibility study will incorporate an updated mineral resource estimate
which is currently being developed by Mercator Geological Services Limited
("Mercator"). In addition, the Company has subcontracted Klohn Crippen Berger
S.A. based out of Lima, Peru, to identify and quantify the water supply sources
in support of the feasibility study, and RRD International Corporation based out
of Panama City, Panama have been subcontracted to support the feasibility work
on the Tailings Storage Facility.


Neil Ringdahl, CEO of Apogee, commented, "Awarding the feasibility study
represents another very important milestone for Apogee Silver as we move the
Pulacayo Project forward. We are excited by the prospects of the next stage of
project development and are pleased to formally expand the work with TWP
Sudamerica. We believe our ongoing test mining is providing valuable knowledge
toward the future development of this project."


Trial mining initiatives at Pulacayo have been ongoing since October 2011. To
the end of April 2012 trial mining operations have resulted in the
rehabilitation of over 1,600 meters of historical mine galleries and tunnels.
Over 9,400 tonnes of material were mined in this period and 428 meters of new
development has been completed including 259 meters in mineralized material on
the 4,275 meter level of the mine. The mineralized material is currently being
stockpiled on site and opportunities to process the stockpiles at any one of
several flotation plants in the Department of Potosi are currently being
evaluated. 


In light of the contract awarded to TWP evaluating feasibility of a larger mine
and mill complex, other activities relating to the previously announced
development of a 400 tpd Pilot Concentrator and tailings storage facility have
been suspended pending completion of this feasibility study. 


Technical Disclosure Clarification 

Based upon the results of Mercator's updated mineral resource estimate effective
October 19th, 2011, as filed on SEDAR, the Company has determined that its
previously announced preliminary economic assessment dated June 25, 2010 ("PEA")
is no longer current and should not be relied upon. In response to the need to
clarify this disclosure, the Company anticipates that an amended technical
report supporting the updated mineral resource estimate dated October 19th,
2011, noting that the updated disclosure supersedes the previous PEA, will be
filed on the Company's SEDAR profile in June 2012. The amended mineral resource
estimate technical report will not reflect any material changes to the mineral
resource estimate itself, however, it will clarify that the PEA is no longer
current and should not be relied upon. The mineral resource estimate in the
amended technical report is summarized as follows:


Table 1: Summary of Mineral Resources, Pulacayo Deposits effective October 19th,
2011, amended May 24th 2012 




----------------------------------------------------------------------------
   Pulacayo Underground Mineral Resources - Inverse Distance Squared Model  
----------------------------------------------------------------------------
 All blocks within $40 NSR Domain and greater than or equal to $40NSR cutoff
----------------------------------------------------------------------------
Class           Tonnes       Ag       Pb       Zn       Ag       Pb       Zn
                            g/t        %        %  Million  Million  Million
                                                       oz.     lbs.     lbs.
----------------------------------------------------------------------------
Indicated    5,960,000   153.14     0.91     2.04    29.34   119.57   268.05
----------------------------------------------------------------------------
Inferred     5,420,000   150.61     0.83     2.07    26.24    99.18   247.35
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
1) Notes: Mineral resources are reported at a $40US NSR cut-off             
2) Metal prices used were $24.78US/oz Ag, $1.19US/lb Pb, and $1.09US/'b Zn  
3) Tonnages have been rounded to the nearest 10,000                         
4) Contributing 1.0 m assay composites were capped at 1500g/t Ag, 15% Pb,   
   and 15% Zn                                                               
5) Specific gravity is based on an interpolated ID2 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.                     



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 carried out under the supervision of
Chris Collins, P. Geo. a qualified person as defined by NI 43-101. 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% controlled Pulacayo-Paca project in
Bolivia, This project includes the property that covered the second-largest
silver mine in the history of Bolivia with a historical estimate of over 600
million ounces of past production.


Web: www.apogeesilver.com

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 anticipated timing of the feasibility study and
the mineral resource estimate, the potential effect of the silver oxide drill
results, 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 anticipated timing with respect
to completion of the diamond drill program, the current drill program,
anticipated timing with respect to the trial mining 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 Ringdahl, Chief Executive Officer

To view the map associated with this press release, "Figure 1: Pulacayo Project
Location Map," please visit the following link:
http://media3.marketwire.com/docs/APE2905_figure1.pdf.