Apogee Announces Optimized Open Pit Resource for Paca Project

TORONTO, ON February 19, 2007 Apogee Minerals Ltd. (TSX Venture Exchange: APE) has received an initial Inferred Mineral Resource Estimate for the Paca deposit of 18.42 million tonnes at a grade of 43g/t silver, 1.16% zinc and 0.68% lead.

Apogee President and CEO John Carlesso commented: “We are very pleased with the success we have achieved with our 2006 exploration program at the Paca Open Pit project. This preliminary Resource Estimate is very much a starting point that represents a current snapshot of the progress we have realized to-date. Our exploration team has done an outstanding job of meeting the objectives we have set for ourselves on schedule and on budget. We will quickly undertake the necessary requirements to advance the Paca Resource to Indicated status and progress toward a Feasibility Study. While we are continuing with a work program to improve and upgrade this asset, the Paca Resource now establishes a solid fundamental footing for our corporate growth plans.”

The mineral resource estimation, prepared by Micon International Limited, included constructing a preliminary Lerches-Grossman open pit shell utilizing the Open Pit Optimization module of the Surpac mine modelling software, which shows that much of the silver, zinc and lead mineralization outlined in the resource model has the potential to be extracted at a profit, given assumptions utilized.

Based on this resource, the estimated potential gross metal content, excluding consideration of mining and metallurgical dilution, is approximately 19.37 million ounces silver, 433.29 million pounds zinc and 237.43 million pounds lead. The calculated in-situ silver equivalent grade is 181g silver/tonne with metallurgical recoveries and net smelter returns assumed to be 100%.

Mr Doug Currie, Apogee’s Vice President, Exploration stated: “2006 was an extremely active year for our exploration team and their dedicated efforts have achieved this tremendous outcome. The Paca deposit remains open at depth to the north and along strike to the west. I believe that with an ongoing focus on resource definition, there is an excellent potential to expand the existing resource and to locate additional mineralization in the vicinity of the Paca Deposit and at the nearby Pulacayo Mine.”

During 2006, Apogee also completed several drill programs within the historic Pulacayo Mine to evaluate the potential to delineate shallow, open pittable, stockwork mineralization in the upper portion of the Tajo Vein System (UTVS) and to test the historically mined, very high grade, Tajo vein at depth for hangingwall/footwall mineralization (LTVS). Results of this drilling, reported in Apogee press releases dated June 22 and September 7, 2006, are considered very encouraging with broad zones of mineralization reported within both target areas.

A short program of eight drillholes was completed in the UTVS prior to year end; the results of this drilling will be available shortly. The Company believes there is potential to define an initial resource in this zone during the next 6 months with the objective of identifying open-pit resources complementary to Paca.

Apogee’s short term objective is to complete additional drilling within the Paca Deposit to confirm and expand the current resource, to complete preliminary metallurgical test work, and to commence an environmental baseline study and geotechnical investigations in preparation for a Preliminary Assessment in the second half of the year.

Metallurgical testwork will commence immediately and an infill drill program comprising approximately 10- 12,500m of drilling in 40-50 drillholes is expected to commence shortly. A budget of US$1.5M has been allocated for this work, which should be completed in June, 2007.

The Paca Open Pit Resource

The resource is contained within three interpreted mineralization zones: Zona Principal, Paca Norte, and Zona Transversal. Mineralization in the Zona Principal strikes approximately east-west and dips 30-60˚ to the north. The Paca Norte mineralization occurs as a flat-lying sheet but has only been defined by a small number of drill holes. The interpreted Zona Transversal, also only defined by a few holes, appears to have a strike approximately east-west but dips steeply to the north. Mineralization is zoned, with the highest silver values within the Paca Norte Zone and the highest zinc values associated with the Zona Principal.

The conceptual scope of the project is that the mineralization will be mined by open pit mining methods and will be delivered to a processing plant to be built locally. The processing plant will recover silver, zinc and lead using a conventional flotation flowsheet. Zinc and lead concentrates will be trucked to the railhead at Uyuni, 35km to the west, where they would be loaded onto gondola cars for transport by rail to an ocean port at Puerto Mejillones, Chile.

Modelling of the deposit was accomplished by constructing interpretations of the polymetallic mineralization using Gross Metal Values on cross sections spaced 50m apart. Metal prices used were $US10.43/oz for silver, $US1.30/lb for zinc and $US0.55/lb for lead. A cut off Gross Metal Value of $US20 was chosen for modeling of the mineralized envelopes; no high grade cut has been deemed necessary. Key input parameters to this study are shown in Table 1.

Apogee commenced exploration of the Paca project early in 2006 and, within 12 months has completed approximately 12,750m of diamond drilling in 73 drillholes, to successfully establish a mineral resource over an area measuring approximately 600m x 100-150m. The program, designed to follow-up high grade silver mineralization intersected within broad zones of zinc and lead mineralization previously reported in historical drilling by joint venture partner, Apex Silver Mines Limited (AMEX:SIL), was successful in delineating this mineral resource (See Apex Silver Press Release October 23, 2002 and Apogee Press Releases July 31, 2006, November 7, 2006 and February 1, 2007).

Additional drilling along the western strike extension and down-dip projection of the mineralization is necessary to define the limits of mineralization. Within the resource area, which has been drilled at a 50m x 50m spacing, the mineralization demonstrates generally good geological continuity in the western portions of the deposit; however, additional drilling is deemed necessary in the central and eastern portions to provide greater confidence in the current interpretation. This additional drilling will also assist to quantify more precisely the spatial continuity of the metal distribution.

Also, with further investigation, better definition of specific technical and economic parameters relating to mining, metallurgy, geotechnical characteristics of the possible pit area, costs, etc will contribute to refinement and reclassification of the current resource model.

History of Pulacayo-Paca Silver Mines

The Pulacayo-Paca project is located in southwestern Bolivia near the city of Uyuni, 460km south of La Paz, Bolivia, in the historical San Cristobal-Potosi Silver Belt, a wide, well mineralized zone of significant historical silver producers, including the three largest silver deposits in Bolivian history (Potosi, San Cristobal, and Pulacayo).

Discovered in 1883, the Pulacayo Silver Mine was the second largest silver mine in Bolivia after Cerro Rico de Potosi and one of the most important in Latin America, having produced over 600 million ounces of silver, 180,000 tonnes of zinc, and 180,000 tonnes of lead from 1883 to 1959 (ref. Sergeomin – Bulletin No 30, 2002). Production has been mainly from the non-outcropping Tajo vein system which was exploited to a depth of 1000 meters and averaged 30 ounces silver per tonne over a strike length of 2500 meters. Revenue from the mine funded the first railway line to Bolivia, which connected the mine to the port of Antofagasta, Chile in 1888. The project is located 20 km by gravel road from the city of Uyuni which is connected by highway and railway to the sea port of Antofagasta, Chile. The site contains all necessary services: power, water and an experienced labour force from the surrounding village of Pulacayo.

The Paca project is located approximately 5km north of the Pulacayo mine and town site. Only minimal historical mining has occurred at Paca. Previous interpretation of geological mapping and historical drilling by Apex Silver indicated that mineralization reported was predominantly “mantos-style” within a shallow, flat-lying sedimentary unit which overlies a sub-vertical brecciated “feeder” zone related to an andesite intrusive dome. Mineralization within the “mantos” is dominantly high grade silver, with weaker lead and zinc values; mineralization in the “feeder” zones generally has higher grade lead and zinc values than in the mantos, with narrow, moderate to high grade, silver values.

Apogee geologists now believe that the geology of the Paca mineralized zone is more complicated than originally interpreted, with potential for feeder-style mineralization being more widespread than originally thought and for additional zones of flat lying mantos-style mineralization at depth within the sedimentary unit.

Apogee entered into a joint venture agreement with Apex Silver late in 2005 which allows Apogee to earn a 60% interest in the property by spending US$1.0million on exploration, including US$250,000 during the first six months, and completing a Feasibility Study during a three year Earn-in Period; Apex Silver have an option to increase its interest to 60% by funding development to production (see Press Release dated September 15, 2005).

Building A Premier Emerging Silver Producer

Apogee Minerals Ltd. is a Canadian producer of silver-zinc-lead and also carries out exploration and development activities. The company is listed on the TSX Venture Exchange under the symbol APE. Apogee is focused on advanced Silver-Zinc projects in South America that demonstrate the potential to receive capital investment and be rapidly developed to production. Currently all of its projects are located in the historic silver producing regions of central and southwest Bolivia.

The 100%-owned La Solucion Mine, which produces approximately 2,300 tonnes of ore each month averaging 44g/t silver, 1.3% lead and 4.11 % zinc (2006 average), has a 17 year production history and hosts a 120 tonne per day flotation mill. Apogee management is focused on modernizing mining methods, improving revenue, increasing efficiencies, and delineating a resource estimate that will support expanded production in the intermediate and long-term time frames. Apogee’s Pulacayo-Paca project is a Joint Venture with Apex Silver Mines Ltd. on the second-largest silver mine in the history of Bolivia with over 600 million ounces of past production. The Buena Vista Project is a high-grade gold-silver project with historic production dating back over 200 years.

For further information contact:
John Carlesso
President & C.E.O.
(416) 861-5881

Regulatory Footnotes:

Mr. Douglas A. Currie, MAusIMM, Apogee’s Vice President-Exploration, is the Qualified Person as defined under National Instrument 43-101 responsible for the scientific and technical work on the exploration program and is responsible for reviewing the technical disclosure in this press release.

All analytical work has been completed by ALS Chemex of North Vancouver, BC, Canada; ALS Chemex is a respected international analytical service which is accredited with NATA and complies with standards of ISO 9001:2000 and ISO 17025:1999. They employ a variety of international standards for quality control purposes.

Samples are transported from field projects to the ALS Chemex sample preparation facility in Oruru, Bolivia, by Company personnel or a reputable commercial carrier. All analytical testing is performed utilizing a variety of industry standard analytical techniques, including: (i) ALS Analytical Code ME-MS41 – 50 element analysis using aquaregia digest and ICPAES analysis, (ii) ALS Analytical Code AA46 & AA62 – specific element analysis using aquaregia digest and AAS determination (Ag, Zn, Pb, Cu, As) and, (iii) Analytical Code Au-AA26 – Gold using a 50g Fire Assay-AAS finish.

All diamond drill core is geologically logged and sampled by Company geologists then is cut in half using a diamond saw and sampled in one(1) meter sample intervals; the archive portion of the sample is securely stored at each project site. The Company has initiated a QA/QC program consisting of utilizing standards, duplicate and blank samples and laboratory cross-checks and routinely repeats sample analysis.

Statements in this release that are not historical facts are “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Readers are cautioned that any such statements are not guarantees of future performance and that actual development or results may vary materially from those in these “forward-looking statements”.

Note 1: Silver equivalent has been calculated using the following formula:

Silver equivalent (AgEq)(g/t) = Ag(g/t)+ {[ (Zn(%)*22.046*Zn Price(US$/lb)) + (Pb(%)*22.046*Pb Price (US$/lb)) / AgPrice(US$/oz) ] * 31.103}

Table 1 Key Input Parameters Open Pit Optimization Paca Project

FIGURE 1: DRILL PLAN

FIGURE 2: SCHEMATIC CROSS SECTION 9900E (Looking West)

FIGURE 3: PACA MINERAL RESOURCE
Lerches-Grossman Pit Shell and Blocks Contained Within the US$20 Gross Metal Value Domain Model
(Brown-Pit Shell, Red Blocks – Profitable, Yellow Blocks – Waste)
(Looking Southwest)

FIGURE 4A: Cross Section 739450E, Optimized Open Pit(Black-Optimized Pit Outline, Red-Zona Principal, Grey-Zona Transversal)
Looking West

FIGURE 4B: Cross Section 739550E, Optimized Open Pit(Black-Optimized Pit Outline, Red-Zona Principal, Grey-Zona Transversal )
Looking West