Apogee Silver Ltd. Announces Closing of C$25 Million Bought Deal Private Placement Including Exercise in Full of Over-Allotment Option and Sprott Resource Lending Partnership…

TORONTO, ONTARIO–(Marketwire – May 3, 2011) –

THIS NEWS RELEASE IS NOT INTENDED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Apogee Silver Ltd. (TSX VENTURE:APE) (“Apogee” or the “Company”) is pleased to announce that it has closed its previously announced bought deal private placement (the “Offering”) of 89,400,000 common shares (the “Offered Shares”) of the Company at a price of C$0.28 per Offered Share for aggregate gross proceeds of C$25,032,000. The aggregate number of common shares issued includes 17,900,000 common shares issued pursuant to the full exercise of the over-allotment option granted to the Underwriters (defined below) pursuant to the Offering.

The Offered Shares were sold pursuant to an underwriting agreement between Apogee and a syndicate of underwriters led by National Bank Financial Inc., together with Fraser Mackenzie Limited as co-lead underwriter and including Desjardins Securities Inc., Jennings Capital Inc., Union Securities Limited and Pope & Company Limited (collectively, the “Underwriters”).

The Company intends to use the net proceeds from the Offering to fund exploration activities at the 100% owned Pulacayo deposit in the Potosi region of southwest Bolivia as well as to advance the Pulacayo project towards production and for general corporate purposes.

Apogee is also pleased to announce that Sprott Resource Lending Partnership is the proposed lender in connection with the letter of intent for project financing for the Pulacayo-Paca project that it announced on April 26, 2011.

David Gower, Chief Executive Officer of Apogee commented: “The proceeds from the Offering, together with the proposed C$15 million facility give Apogee a very strong balance sheet with which to execute on the Pulacayo-Paca project. We are delighted to welcome a dozen institutional investors as new shareholders of Apogee and we are pleased to report that Coeur D’Alene, which operates a successful silver/lead/zinc mine in Bolivia, participated in our private placement too. We have had positive meetings with the Vice Minister of Mines in Bolivia in the past week and the Ministry has confirmed its support for Apogee’s investment in the Project. We are happy to host a tour of analysts and institutional investors later this week and the Vice Minister has further demonstrated his support by offering to join the analysts tour to directly address the group.”

About Apogee Silver Ltd

Apogee 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 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.

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 the future financial or operating performance of the Company, its subsidiaries and its projects, statements regarding the development of the Pulacayo-Paca project, statements with respect to the terms and use of proceeds of the Offering and the impact of the Offering on the Company, and statements with respect to the ability to obtain financing and the completion of the contemplated transactions on the terms described. 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 statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on the opinions and estimates of management as of the date such statements are made and they are 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. Although management of 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 are 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 that is included herein, except in accordance with applicable securities laws.

NEITHER THE 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:
Apogee Silver Ltd.
Marilia Bento
Vice President Corporate Development
+1 (416) 309-2694
info@apogeesilver.com

Apogee Silver Ltd.
G. Scott Paterson
Chairman of the Board
+1 (416) 368-6464
info@apogeesilver.com
www.apogeesilver.com

Source: Apogee Silver Ltd.