Apogee Silver Exposes High Silver Grades in Pre-Production Mining at Its Pulacayo-Paca Project

Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) reports that it
has opened underground access to a number of mineralized vein systems in
pre-production development at its Pulacayo project in south western Bolivia (See
Figure 1 - http://media3.marketwire.com/docs/ape710-F1.pdf). A development and
sampling program in the OB6 drift exposed a vein with average grades of 868g/t
silver, 11.95% lead, and 5.05% zinc over a 97m strike length and average width
of 0.61m (Figure 2 - http://media3.marketwire.com/docs/ape710-F2.pdf). 


Grades as high as 3,130 g/t silver, 38.69% lead and 22.47% zinc have been
observed elsewhere within this vein over corresponding widths of 0.33m for the
silver & lead, and 0.37m in respect of the zinc. These results correlate well
with those of historical sampling and underground exploration drillhole PUD 083
(not included in the average grade calculations above), which intersected the
vein approximately 6m below the development, and are also above the stated NI
43-101 mineral Resource and Reserve grades (see press release dated January
17th, 2013). Stoping operations continue in the original trial mining OB6 stope
and average diluted grades are shown for ore extracted from each stope panel in
Figure 3 (http://media3.marketwire.com/docs/ape710-F3.pdf). 


The ore mined was stockpiled at Pulacayo and then transported and toll milled at
Potosi, 200km from the mine. Since trial milling began in 2012, over 11,000 tons
has been treated to date to recover more than 92,000 silver equivalent ounces(1)
in lead and zinc concentrates for an average overall silver recovery of 82.71%,
using third party toll processing facilities. The average mill head grades over
this period were 249g/t silver, 2.31% lead and 2.49% zinc, higher than the
stated NI 43-101 mineral Resource and Reserve grades (See Press release dated
17th January 2013), despite dilutive development ore being the predominant
source of material for milling to date. Proceeds from the sale of concentrates
have been used to fund pre-production activities and continue with training of
the local work force. 


The Company has initiated the process of seeking potential financial partners to
assist in the construction of its Phase I mine & mill complex, which is designed
to produce 2.5 million silver equivalent ounces per year (see press release
dated January 17th, 2013). This production level is supported by the NI 43-101
technical report entitled Pulacayo Project Feasibility Study (filed on
www.sedar.ca on Mar 1, 2013), and showed a positive pre-tax Internal Rate of
Return of (IRR) of 47.1% and after-tax IRR of 32% at silver price of
US$28.00/oz. Sensitivity analysis to metal price in the study using a lower
silver price of US$19.00/oz returned a positive pre-tax Internal Rate of Return
(IRR) of 22.3% and an after-tax IRR of 14.1%. In the light of the reduction in
metal prices, the Company has been continuously reviewing its operational
performance and is curtailing discretionary spending. Given the limited
pre-production volumes, this includes the temporary halting of toll milling
operations.


Management Changes

The Company announces the appointment of Mr. Gregory Duras, CGA, CPA as Chief
Financial Officer. Mr. Duras is a professional accountant with significant
experience in the resource sector having worked as Chief Financial Officer for
various publicly traded companies including Avion Gold Corp. which had mining
operations in Mali and Burkina Faso in West Africa. Previously held positions
include Vice President of Finance and Administration at S.C. Rosia Montana Gold
Corporation S.A. (RMGC), a mineral exploration and mining development company
based in Romania and a number of senior finance roles, including Controller of
TSX-listed Gabriel Resources Ltd. and High River Gold Mines Ltd. Mr. Duras is a
Certified General Accountant and a Certified Professional Accountant, and holds
a Bachelor of Administration from Lakehead University.


The Company announces Ms. Marilia Bento has resigned as VP Corporate Development. 

Qualified Persons

The scientific and technical information presented in this press release has
been reviewed and approved by Professor Jim Porter (FSAIMM) and Michael Cullen
(P.Geo). Professor Porter and Mr. Cullen are both qualified persons, as defined
by NI 43-101. 


Quality Control 

All sample processing and analytical procedures used to obtain the assay results
in this press release were conducted in the Company's analytical laboratory on
site at Pulacayo. This facility is not accredited and is not independent of
Apogee. The laboratory employs a QA/QC protocol for all aspects of its sample
processing and analytical procedures and this includes systematic analysis of
certified reference standards, blank samples, duplicate recourse reject and pulp
splits, and analysis of preparation stage duplicates. An independent third party
check sampling program is also incorporated in the laboratory protocol and the
Company uses SGS Mineral Services in La Paz, Bolivia for this purpose. SGS
Mineral Services is a fully accredited, international analytical firm that is
independent of Apogee. All sample pulps are stored on site for future reference.



For more detailed project information please refer to Apogee's website 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, high
grade 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% controlled Pulacayo-Paca project in
Bolivia, for which a positive feasibility study has been completed. 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.


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, projections and estimates with
respect to results of the feasibility study and the mineral reserve and resource
estimate, the potential effect of the metallurgical results, the impact and
anticipated timing of future metallurgical results, potential effect of the toll
milling and trial mining process and impact upon the future development of the
property, 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 ability to obtain financing
and/or financial partners; and the impact of concerns relating to permitting,
reusltation, governmental and local community relations. 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". Estimates underlying the results
of the feasibility study arise from engineering, geological and costing work of
TWP Sudamerica, Mercator Geological Services, P&E Mining Consultants and the
Company. See the technical report relating to the feasibility study for a
description of all relevant estimates, assumptions and parameters.
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: general business, economic, competitive, geopolitical and social
uncertainties; the actual results of current exploration activities; other risks
of the mining industry and the risks described in the annual information form of
the Company. 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.


(1) Includes base metal credits for zinc and lead at spot pricing of
Ag-$21.75/oz, Pb-$0.9383/lb and Zn-$0.8275/lb


FOR FURTHER INFORMATION PLEASE CONTACT: 
Apogee Silver Ltd.
Neil T. Ringdahl
Chief Executive Officer
[phone]
[e-mail]
www.apogeesilver.com