Ms. Marilia Bento reports

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 AS PROPOSED LENDER FOR PROJECT FINANCING

Apogee Silver Ltd. has closed its previously announced bought deal private placement of 89.4 million common shares of the company at a price of 28 cents per offered share for aggregate gross proceeds of $25,032,000. The aggregate number of common shares issued includes 17.9 million common shares issued pursuant to the full exercise of the overallotment option granted to the underwriters 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 Ltd. as co-lead underwriter and including Desjardins Securities Inc., Jennings Capital Inc., Union Securities Ltd. and Pope & Company Ltd.

The company intends to use the net proceeds from the offering to fund exploration activities at the 100-per-cent-owned Pulacayo deposit in the Potosi region of southwest Bolivia as well as to advance the Pulacayo project toward production and for general corporate purposes.

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

David Gower, chief executive officer of Apogee, commented: "The proceeds from the offering, together with the proposed $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."

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