Mr. Andrew Bowering reports

APOLLO SILVER PROVIDES CORPORATE UPDATE

Apollo Silver Corp. has provided a corporate update and outlook for the company.

Highlights:

• Successfully mitigated single asset risk and bolstered existing mineral inventory through optioning the high-grade Cinco de Mayo silver project in Chihuahua, Mexico (see news release dated Sept. 23, 2024).
• Completed $13.5-million financing (see news release dated Nov. 11, 2024).
• Strengthened board and management with the additions of Alex Tsakumis and Amandip Singh, respectively (see news release dated Oct. 3, 2024).
• Engaged a team of highly qualified professionals with ties to the local community and a record of success in navigating community relations and social licensing requirements, at Cinco de Mayo.
• Commencing maiden barite resource estimate and follow up gold exploration program at the Calico silver project in San Bernardino, Calif., in 2025

Interim president and chief executive officer Andrew Bowering commented, "In what has been a productive 2024, the company has been executing on its vision for the future. We have successfully entered into an option agreement to acquire the Cinco de Mayo project, mitigating single asset risk. Furthermore, we completed a financing that significantly strengthens our treasury, allowing us to continue to build long-term shareholder value across our portfolio of North American silver projects."

Cinco de Mayo transaction terms

On Sept. 20, 2024, the company entered into an earn-in and option agreement with MAG Silver Corp. and its subsidiary, Minera Pozo Seco S.A. de C.V., pursuant to which the company has the option to acquire Cinco de Mayo. To satisfy the option, and acquire a 100-per-cent interest in Cinco de Mayo, the company must first obtain the necessary licensing and permits to access the property and conduct mining activities on Cinco de Mayo, followed by completing no less than 20,000 metres of exploration drilling within five years. Upon completion of those terms and subject to the final approval of the TSX Venture Exchange, Apollo Silver must 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. In addition, Apollo Silver will grant MAG the right to maintain its 19.9-per-cent stake by participating in any subsequent financing for an additional four-year period.

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 Cinco de Mayo in good standing.

Financing and treasury

On Nov. 11, 2024, the company announced that it closed its fully subscribed and upsized private placement of $13.5-million. The financing received strong support, including investment from Eric Sprott, and several institutional investors including but not limited to: Jupiter Asset Management Ltd., Commodity Capital AG, Primevestfund and Terra Capital Natural Resources Fund. The company currently has working capital of approximately $13.5-million and is expecting to commence barite resource estimation work at Calico and additional exploration on the recent gold discovery Calico in the new year. The company is sufficiently financed to continue its continuing community initiatives and negotiations with the local community to restore access to Cinco de Mayo, satisfy its continuing general working capital requirements, and be able to commence future exploration work at Cinco de Mayo, once access is restored.

Upcoming events

The company will be participating in an east coast non-deal road show visiting New York City, Hartford and Philadelphia Jan. 13 to Jan. 15, 2025. Apollo Silver management will also be speaking at the Vancouver edition of the Metals Investor Forum Jan. 17 to Jan. 18, 2025, followed by participating in the Vancouver Resource Investment Conference and AME Round Up 2025 from Jan. 20 to Jan. 23, 2025. Management will also be participating in Michael Campbell's 2025 World Outlook Financial Conference Feb. 7 to Feb. 8, 2025, on-line and in person at The Westin Bayshore Hotel, Vancouver, B.C.

A list of future events will be available on the company's website in the new year.

About Apollo Silver Corp.

Apollo Silver has assembled an experienced and technically strong leadership team who have joined to advance world class precious metals 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, Mexico.

We seek Safe Harbor.