Apogee Silver Receives Approval for the Development of Pulacayo by Bolivia's Ministry of Environment & Water

Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE)(OTCQX:AGEEF)
announces that Bolivia's Ministry of Environment and Water ("MMA y A") has
approved the Environmental Impact Assessment ("EIA") for the Pulacayo silver and
base metals project ("Pulacayo Project") in southwestern Bolivia. The approval
of the EIA is the key milestone in the advancement of the project towards the
construction phase.


Neil Ringdahl, President and CEO of Apogee, commented "We are very pleased about
the approval of the Pulacayo Project by the Ministry of Environment and Water.
This completes an extensive regulatory process and represents an essential step
in bringing the Pulacayo Project to production. We wish to acknowledge the
Pulacayo Cooperative and local communities for their valuable input and support,
as well as the Bolivian authorities for their expeditious review and approval."


The EIA was submitted to the MMA y A on December 17, 2012. The submission was
the result of over 30 months of technical studies and consultations, including a
comprehensive water management plan, the feasibility study, archeological
studies, flora and fauna studies, mine closure planning, social baseline
studies, and results from two years of public consultations with local
communities. 


The approval of the EIA will allow Apogee, subject to the receipt of all
necessary regulatory approvals and sufficient funding, to begin mine and
concentrator construction with a targeted production rate of up to 560 tonnes
per day (tpd) at the Pulacayo Project. The recently published feasibility study
(filed on www.sedar.com on March 1, 2013, subsequent to the original EIA
submission) anticipated a buildup to a production rate of 1,000 tpd through two
designed 500 tpd concentrator modules over three years. The Company believes it
will be able to successfully modify this environmental permit at such time it
exceeds 500 tpd, given that part of the current permit already incorporates a
1,000 tpd tailings storage facility and other mining infrastructure as designed.



Initial earthworks for the concentrator are completed and a 1.3 km access road
from the Pulacayo concentrator site to the newly paved, government-funded,
double lane Potosi-Uyuni highway has been built, significantly improving access
to the Pulacayo Project. As part of the ongoing infrastructure improvements
across Bolivia, another new, double lane, paved road connecting Pulacayo to
Oruro via Uyuni is expected to be completed in early 2014. The entire 755 km
access route to the port of Arica on the Chilean coast will then be completely
paved. Additionally, a new national airport has been recently built at Uyuni,
just 25 km from the mine. The airport currently hosts three commercial flights
per day from La Paz and connecting flights to other parts of Bolivia, and it is
understood that plans are underway to convert it into an international airport
in the future.


A new government-funded electrical substation for the town of Uyuni is being
constructed with sufficient capacity for the Pulacayo Project as well, only 27
km away from the mine. Previously, the Feasibility Study anticipated building a
switching substation at Tazna, 61 km from Pulacayo and the construction of a 115
kV power line. Permitting activities for both options are already underway. 


Apogee have a proven management team with demonstrated operational success in
Bolivia: In 2011 and 2012 over 31,000 m of additional surface and underground
exploration drilling was concluded at the Pulacayo Project, resulting in
significant increases in the NI 43-101 resources (see press releases dated
October 19, 2011 and September 28, 2012). 


In May 2012, the Company announced the commencement of an independent
feasibility study, and the subsequent positive result was disclosed in press
releases on January 17, 2013 and March 1, 2013.


The Company has successfully conducted bulk underground trial mining activities
at the Pulacayo Project, and transport of ore to Potosi for toll milling
operations where silver recoveries of up to 86% were achieved (see press release
September 13, 2012) despite operational difficulties and sub-optimal
concentrator performance. Management believes this may suggest that higher
recoveries are possible with lower transport costs, should the Company be able
to construct its own concentrator as planned at site. 


Supervisors and operators have been sourced from affected communities and
trained in partnership with the Pulacayo Cooperative. Upon reactivation of the
mine site, this workforce is readily available for project construction and
production. The Pulacayo Project additionally obtained overwhelming approval
from affected communities and stakeholders in a well-attended community
consultation meeting held in December 2012 (see press release Jan 9, 2013). 


In 2013, 291 tonnes of lead-silver concentrates and 377 tonnes of zinc-silver
concentrates were successfully exported to the port of Arica, Chile to realize
pre-production sales of over US$1.6 million to Trafigura PTE Ltd., demonstrating
the Company's ability to obtain all the necessary export permits. In addition,
from these sales the Company was able to remit tax revenues and royalties to the
people of the Bolivia, including the Pulacayo cooperative. 


Apogee continues to actively pursue financing partners and/or financing
alternatives to provide the Company with the required capital to develop the
Pulacayo Project.


About Apogee Silver Limited

Apogee Silver is a mineral exploration and development company focused on
advancing its 100% controlled Pulacayo Project to production. Currently in its
financing phase, this low capital and operating cost silver and base metals mine
project is located in the prolific silver-producing Potosi district in
southwestern Bolivia. The Feasibility Study (based on US$28 Silver) on the
foundation phase of the project estimates an initial CAPEX of $55 million that
will support a mining rate of 1,000 tonnes per day for 10 years at all-in costs
(including capex, opex and sustaining capex) of $15.66/oz and cash operating
costs of US$11.20/oz producing approximately 2,300,000 silver equivalent ounces
(including base metal credits using base metal prices of US$0.86/lb for Pb &
US$1.00/lb for Zn). This initial mine scenario features a pre-tax IRR of 47.1%
and post-tax IRR of 32.1%. The Feasibility Study considers only approximately
49% of the silver ounces from the total Pulacayo Project mineral resource and
the Company intends to expand its operation once in production. Additional
mineral growth from exploration drilling on down-dip and strike defined targets
adjacent to the current resource is also anticipated, and excludes the potential
presented by the Paca resource just 7km away. Apogee is led by a proven
management team with hands-on experience developing and operating mines in Latin
America.


Apogee shares are listed on the TSX Venture Exchange (TSXV) under the symbol
"APE", and on the premier tier of the U.S. Over-the-Counter market (OTCQX) under
the symbol "AGEEF".


The technical information provided in this news release was reviewed and
approved by Professor J.L. Porter (FSAIMM), a consultant to Apogee Silver
Limited and a qualified person for the purposes of National Instrument 43-101. 


On Behalf of Apogee Silver Limited,



Neil T. Ringdahl              G. Scott Paterson             
Chief Executive Officer       Chairman                      



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 anticipated timing and impact of the proposed amendments to the
Bolivian Mining Law, the future financial or operating performance of the
Company, its subsidiaries and its projects, the ability to obtain financing
and/or financial partners; and the impact of concerns relating to permitting,
other necessary approvals, 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 necessary approvals from the Bolivian
authorities or COMIBOL,; 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.


Neither 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: 
Neil T. Ringdahl
Chief Executive Officer
[phone]
[e-mail]
www.apogeesilver.com