Mr. Andrew Bowering of Apollo Silver reports

APOLLO SILVER TO OPTION CINCO DE MAYO PROJECT, CHIHUAHUA, MEXICO

Apollo Silver Corp. has entered into an exploration, earn-in and option agreement, dated effective Sept. 20, 2024, with Mag Silver Corp. and its subsidiary, Minera Pozo Seco SA de CV (MPS), pursuant to which Apollo Silver has the option to acquire the Cinco de Mayo project.

"This is an exciting time for Apollo Silver as the addition of Cinco de Mayo marks the beginning of our transformation as a company. We have successfully mitigated single-asset risk by now boasting a portfolio of two exciting projects in two pro-mining jurisdictions," commented Apollo Silver chairman and interim chief executive officer Andrew Bowering. "Much of our group has considerable experience in Mexico and we are excited to begin the work to unlock value at Cinco de Mayo for all our stakeholders."

Cinco de Mayo comprises 29 concessions totalling approximately 25,000 hectares and is located in the north-central part of Chihuahua state, Mexico, approximately 190 kilometres northwest of the state capital of Chihuahua city in the Municipio de Buenaventura. The project area is located immediately west of the village of Benito Juarez and for the purposes of exploration, benefits from excellent access through local dirt roads.

The project is prospective for and hosts carbonate-replacement-type deposits (CRD), including the Upper Manto lead-zinc-silver (gold) deposit, which consists of two parallel and overlapping manto deposits referred to as the Jose manto and the Bridge zone. The project also hosts the Pozo Seco molybdenum-gold deposit. The two deposits host distinctly different mineralization with different commodities and are separated by four kilometres.

As of Sept. 1, 2012, 445 holes totalling 213,591 metres had been drilled on the project by the previous operators, with no work completed since. Of these, 151 holes totalling 97,610 metres are located at or nearby the Upper Manto deposit and were used to model the mineralization. Roscoe Postle Associates Inc. (RPA) prepared a technical report on the project, dated Nov. 14, 2012, which includes a now historical inferred mineral resource. At an NSR (net smelter return royalty) cut-off of $100 (U.S.) per tonne the historical inferred resource was estimated at 12.45 million tonnes of 132 grams per tonne silver, 2.86 per cent lead and 6.47 per cent zinc and 0.24 gram per tonne gold (see attached table). The total contained metals in the historical resource are 52.7 million ounces of silver, 785 million pounds of lead, 1,777 million pounds of zinc and 96,000 ounces of gold.

A potential new discovery, called the Pegaso zone, was drilled in 2012. Consisting of 61.6 metres of massive sulphide in a deeper hole (CM-12-431), it was not included in the 2012 historical resource estimate. This intercept is considered a high-priority target and has potential to be a significant new discovery. The company's initial review of historical data suggests that the Pegaso zone could indicate a larger and higher-grade resource at depth. As previously indicated, the project also hosts the Pozo Seco molybdenum-gold deposit, for which RPA prepared a historical mineral resource estimate in 2010. At a cut-off grade of 0.022 per cent molybdenum, the historical indicated mineral resources were estimated at 29.1 million tonnes grading 0.147 per cent molybdenum and 0.25 gram per tonne gold, containing 94.0 million pounds molybdenum and 230,000 ounces gold, and a historical inferred mineral resource estimated at 23.4 million tonnes grading 0.103 per cent molybdenum and 0.17 gram per tonne gold, containing 53.2 million pounds molybdenum and 129,000 ounces gold (see attached table).

The historical mineral resources for the Upper Manto and Pozo Seco deposits discussed in this news release were calculated prior to the implementation of current CIM (Canadian Institute of Mining, Metallurgy and Petroleum) standards for mineral resource estimation (as defined by the CIM Definition Standard on Mineral Resources and Ore Reserves dated May 10, 2014). The reader is cautioned not to treat them or any part of them as current mineral resources or reserves. The historical resources have been included simply to demonstrate the mineral potential of the project. As part of the initial phase of work on the project, the company intends to do a thorough review of all historical data performed by a qualified person, along with additional exploration work to confirm results, in order to produce a current mineral resource estimate for the deposits. The company is not aware of any more recent estimates prepared for the project.

The project has not seen any modern work since 2012 when the previous operator, Mag, lost access to the property due to a number of reasons involving community relations with local stakeholders and social licensing requirements. Access to the project is currently restricted by the ejido assembly in the region. Following completion of the transaction, the company intends to actively work with the assembly and the local community to regain access and obtain the necessary licensing to continue exploration activities on the project.

Transaction terms

Pursuant to the terms of the transaction, the company has been granted an option to acquire all of the outstanding share capital of 0890887 B.C. Ltd. (NumberCo), a wholly owned subsidiary of Mag, which itself is the indirect controlling shareholder of MPS. MPS is the sole registered and beneficial owner of the mineral concessions comprising the project. In order to exercise the option, the company is required to obtain the necessary licensing to access and conduct mining activities on the project and subsequently complete no less than 20,000 metres of exploratory drilling, all within a five-year period. Upon exercise of the option and subject to the final approval of the TSX Venture Exchange, the company will issue to Mag common shares equivalent to 19.9 per cent of the then issued and outstanding common shares of the company on a non-diluted basis.

During the option term, the company will control all exploration and development activities on the project and will be responsible for all expenses associated with maintaining the project in good standing. Following exercise of the option, Mag will be granted certain rights allowing it to participate in subsequent equity interests to maintain its percentage ownership interest in the company. The consideration shares will be subject to a four-month statutory hold period in accordance with applicable securities laws.

The company is at arm's length from Mag and MPS, and no finders' fees or commissions are payable in connection with the entering into of the option agreement. In the event the option is exercised and the project is acquired by the company, a finder's fee equivalent to 3.5 per cent of the value of the consideration shares is due and owing to an arm's-length third party that assisted in facilitating the transaction. The finders' fee is payable in cash or common shares of the company or any combination at the discretion of the company and is subject to the approval of the TSX-V. In the event any portion of the finder's fee is payable in common shares of the company, the shares will be issuable at an equivalent deemed price to the consideration shares.

Qualified person

The scientific and technical data contained in this news release were reviewed and approved by Isabelle Lepine, MSc, PGeo, Apollo Silver's director, mineral resources. Ms. Lepine is a registered professional geologist in British Columbia and a qualified person as defined by National Instrument 43-101, Standards of Disclosure for Minerals Projects, and is not an independent of the company.

About Apollo Silver Corp.

Apollo Silver has assembled an experienced and technically strong leadership team that has joined to advance world-class precious metal projects in Tier 1 jurisdictions. The company is focused on advancing its portfolio of two significant silver exploration and resource development projects: the Calico project in San Bernardino county, California, and the Cinco de Mayo project in Chihuahua state, Mexico.

We seek Safe Harbor.