Apollo Gold Announces Expanded Resource at the Black Fox Project

Apollo Gold Corporation ("Apollo" or the "Company")(TSX: APG) (AMEX: AGT) is pleased to announce the results of a newCanadian National Instrument 43-101 ("43-101") resource study at its100% owned Black Fox Project ("Black Fox") located near Timmins,Ontario, Canada. The 43-101 demonstrates the continued expansion ofBlack Fox since the last published 43-101 dated March 25, 2004. Thenew resource study was prepared by Mine Development Associates("MDA"), a well known and respected mining engineering firm based inReno, Nevada, USA. MDA has confirmed that the resource study compliesin all respects with 43-101 guidelines. Table 1 below summarizes theBlack Fox Total Mineral Resource:
Table 1 Black Fox Total Mineral Resource Summary

Tonnes Grade
000's g Au/t Ounces
-----------------------------------
Open Pit - Material
Reserve 3,062 4.56 448,800
Indicated Resource 2,356 3.27
Inferred Resource 6,626 4.00


Underground - Material
Indicated Resource 1,004 9.66
Inferred Resource 1,228 9.71
----------------------------------------------------------------------

The resources shown utilizes a 0.90 grams of gold per tonne ("gAu/t") cut off for material above the 9720 elevation, and a 3.0 g Au/tcut off below the 9720 elevation.

The executive summary from MDA is available on the Apollo website:www.apollogold.com.
Table 2 Black Fox Ore Reserve - Open Pit

Indicated (1) Indicated (2) Total Indicated
----------------------------------------------------------------------
Elevation Tonnes Grade oz Au Tonnes Grade oz Au Tonnes Grade oz Au
000's g Au/t 000's 000's g Au/t 000's 000's g Au/t 000's
----------------------------------------------------------------------
9960 109.2 7.35 25.8 458.4 4.67 68.8 567.7 5.19 94.7
9930 171.5 4.73 26.1 592.6 3.95 75.3 764.1 4.12 101.3
9900 265.2 5.16 44.0 576.4 4.12 76.4 841.6 4.45 120.4
9870 139.1 5.51 24.7 450.0 4.91 71.1 589.1 5.06 95.7
9840 42.8 3.97 5.5 191.8 4.03 24.8 234.6 4.02 30.3
9810 7.5 2.63 0.6 58.2 3.14 5.7 65.8 2.99 6.3
9780
9750
9720
----------------------------------------------------------------------

Totals 735.3 5.36 126.6 2,327.5 4.31 322.2 3,062.7 4.56 448.8
----------------------------------------------------------------------
Table 3 Black Fox Deposit Indicated Resource

Indicated (1) Indicated (2) Total Indicated
----------------------------------------------------------------------
Elevation Tonnes Grade Tonnes Grade Tonnes Grade
000's g Au/t 000's g Au/t 000's g Au/t
----------------------------------------------------------------------
Open Pit
----------------------------------------------------------------------
9960 5.1 3.35 49.8 3.33 54.9 3.34
9930 10.5 1.30 68.3 1.55 78.7 1.52
9900 31.4 1.83 148.2 1.85 179.6 1.85
9870 45.9 2.54 257.5 2.53 303.3 2.53
9840 64.0 3.76 313.2 2.98 377.1 3.11
9810 52.0 3.73 278.0 2.85 330.0 2.99
9780 59.8 4.21 279.8 3.20 339.7 3.38
9750 64.3 7.10 275.3 4.15 339.6 4.71
9720 62.0 5.00 291.0 3.76 353.0 3.98
----------------------------------------------------------------------
Open Pit 394.8 4.20 1,961.1 3.09 2,355.8 3.27

Underground (UG)

9690 36.4 9.85 107.9 9.30 144.3 9.44
9660 54.1 13.66 118.3 11.46 172.4 12.15
9630 24.4 9.10 88.4 8.95 112.7 8.98
9600 15.7 8.99 91.2 9.34 106.9 9.28
9570 31.7 9.10 127.6 8.38 159.3 8.52
9540 31.1 8.70 113.6 7.90 144.7 8.07
9510 15.6 9.81 84.8 10.26 100.4 10.19
9480 4.6 11.66 43.5 12.04 48.1 12.00
9450 1.8 5.83 9.9 8.52 11.7 8.11
9420 0.0 0.00 1.9 4.78 1.9 4.78
9390 0.1 3.74 0.6 3.46 0.7 3.50
9360 0.0 0.00 0.0 0.00 0.0 0.00
9330 0.0 0.00 0.0 0.00 0.0 0.00
9300 0.0 0.00 1.0 3.47 1.0 3.47
----------------------------------------------------------------------
UG 215.5 10.38 788.7 9.46 1,004.2 9.66

----------------------------------------------------------------------
Totals 610.2 6.38 2,749.7 4.92 3,360.0 5.18
Table 4 Black Fox Inferred Material

Tonnes Grade
000's g Au/t
Open Pit
Elev. 10002 - 9720 6,626.4 4.00
Underground
Elev. 9720 -9300 1,228.0 9.71
Total Inferred 7,854.4 4.89
----------------------------------------------------------------------

Non-Reserve Mineral Resources

Cautionary Note to U.S. Investors concerning estimates ofIndicated Mineral Resources: Press releases use the term "indicatedmineral resources." We advise U.S. investors that while the term isrecognized and required by Canadian regulations, the U.S. Securitiesand Exchange Commission does not recognize it. U.S. investors arecautioned not to assume that any part or all of the mineral depositsin these categories will ever be converted into mineral reserves.

Cautionary Note to U.S. Investors concerning estimates of InferredMineral Resources: This press release uses the term "inferred mineralresources." We advise U.S. investors that while the term is recognizedand required by Canadian regulations, the U.S. Securities and ExchangeCommission does not recognize it. "Inferred mineral resources" have agreat amount of uncertainty as to their existence, and greatuncertainty as to their economic and legal feasibility. It cannot beassumed that all or any part of an inferred mineral resources willever be upgraded to a higher category. In accordance with Canadianrules, estimates of inferred mineral resources cannot form the basisof feasibility or other economic studies. U.S. investors are cautionednot to assume that part or all of the inferred mineral resourceexists, or is economically or legally minable.

The resources for the Black Fox deposit are based on 449 surfacediamond drill (136,391.6 meters) and 321 underground diamond drillholes (75,704.5 meters) drilled by Apollo and 245 surface drill holesand 721 underground drill holes drilled by prior owners. However, MDAbelieves that there are two serious sampling issues with the deposit,both of which are related to the occurrence of coarse gold in thedeposit (nugget effect). MDA believes that the result in the Black FoxDeposit is that while a few samples overestimate gold in the areathey represent, most samples tend to contain less gold than isbelieved to be actually present.

First, the gold is often concentrated in small high-grade clots.The challenge is to obtain a sample that contains a representativeamount of gold for the area sampled. The core holes that form thebasis for the resource and reserve estimate are too small to obtain arepresentative sample. A core with a diameter of several meters wouldbe required to obtain representative sample, which is not practical.As a result some of the samples contain too much gold in the sample,from hitting the areas that contain the concentrated gold occurrence.MDA believes that more of the core will produce samples that miss thearea of local concentration and contain less gold than is actuallypresent in the area sampled. Some of these samples may even appear tobe waste.

The second challenge is in preparing and assaying the sample onceit has been obtained. Gold particles up to 0.15 centimeters (cm) havebeen observed and particles of 0.06 cm are very common (Pitard - TheBlack Fox preliminary Pitard report, November 2005). The proper samplesize is required in order to get a representative sample. In order tosample the 0.15 cm gold particles that occur at Black Fox, samples ofup to 109 kilograms (kg) must be processed in their entirety (Pitard,2005). If the sample contains 0.06 cm gold particles, which commonlyoccur in the deposit, a 7 kg sample must be processed in its entirety(Pitard, 2005). These sample sizes are much larger than the typical30-gram fire assay sample or even the 1000-gram screen metallic assaysample. We believe that this results in a few assays containing toomuch gold, with more containing less gold than is actually present inthe whole sample. Francis Pitard, an expert on gold distribution andsampling techniques, in his study of the Black Fox Deposit, concludedthat without proper size samples the database for the deposit likelycontains a few samples that are too high in grade, but more that aretoo low in grade.

For these reasons MDA declined to categorize any of the resource"Measured" until further sampling and test mining is completed. Allthe ore that would have normally been considered "Measured" iscategorized as "Indicated (1)."

Further evidence that our resource model is conservative with goldpredictions is indicated by a comparison of the previously mined oresto what our model estimates would have been a reserve in those areas.Exall, the previous owners, mined a total of 1.1 million tonnesgrading 6.03 g Au/t (calculated head grade) containing 213,600 ouncesof gold from the deposit. MDA compared the material predicted by themodel inside the area mined by Exall to the actual grade and tonnagemined. The model predicted 95,800 ounces as compared to the 213,600ounces that were actually mined. We believe that it is thereforereasonable to infer that positive adjustments to the resource modelwill continue between the model based on drill hole information andthe actual gold mined.

R. David Russell, President & CEO of Apollo, said, "This check ofour model against what in reality is a 1.1 million ton 'bulk sample'cannot be ignored given the positive gold reconciliation. We believethat it clearly indicates that our resource model is conservative andmore test mining and sampling work needs to be done, as per MDA'srecommendations."

MDA completed the resource estimate of material contained in theBlack Fox model between the 9300 elevation and the 9960 elevation.Most of the resource is contained in a part of the Destor-PorcupineFault, 750 meters along strike and drilled to a depth of 350 meters onthe west and 500 meters on the east. The mineralization remains openalong strike and to depth.

The Black Fox resource estimate is based on two cut-offs. A 0.90 gAu/t cut-off, suitable for the open pit, was applied to material downto the 9720 elevation, or about 280 meters below the surface. Belowthe 9720 elevation, a 3.0 g Au/t cut-off was used since it is likelythat this material would only be mined by underground methods.

Open Pit Reserves

The open pit reserves of 448,800 gold ounces are in apre-feasibility study completed by MDA. The study indicates aneconomic project based on a gold price of US$550 per ounce. The studyutilizes processing costs provided by SRK and tailings cost providedby AMEC. The process design was completed by Peter Taggart andgeotechnical studies were completed by Golder and Associates and AMEC.

Pit optimization studies were completed utilizing the followingparameters for the deposit:

-- Overburden mining costs - US$1.25 per tonne of material;

-- Rock mining costs - US$1.50 per tonne of material;

-- Processing costs - US$12.16 per tonne ore;

-- General Administration costs - US$4.50 per tonne ore;

-- Plant Gold recovery - 96%; and

-- Assume 50% of existing underground workings backfilled with material having a density of 2.0.

The following Table 5 indicates the final Pit OptimizationResults:
Table 5 Pit Optimization Results

----------------------------------------------------------------------
Gold Price Indicated 1 Indicated 2
$/oz Au -----------------------------------------------------
cutoff tonnes g Au/ oz Au tonnes g Au/ oz Au
g Au/t 000's tonne 000's 000's tonne 000's
----------------------------------------------------------------------
250 2.12 109.3 10.68 37.5 344.0 8.97 99.2
275 1.93 131.7 10.32 43.7 430.9 8.18 113.3
300 1.77 168.3 9.63 52.1 495.9 7.71 123.0
325 1.63 385.2 7.72 95.6 995.0 6.55 209.5
350 1.51 495.8 7.10 113.1 1,402.3 5.99 269.9
375 1.41 540.4 6.70 116.4 1,588.4 5.58 284.8
400 1.32 568.5 6.45 117.9 1,697.1 5.34 291.1
425 1.25 595.6 6.24 119.5 1,787.1 5.15 295.8
450 1.18 626.3 6.02 121.3 1,916.6 4.92 303.2
475 1.12 649.7 5.85 122.2 2,010.5 4.75 307.0
500 1.06 672.0 5.69 123.0 2,107.2 4.59 311.2
525 1.01 695.3 5.55 124.0 2,201.6 4.46 315.7
550 0.96 725.0 5.41 126.0 2,302.8 4.36 322.7
575 0.92 753.3 5.27 2,407.4 4.24
600 0.88 775.2 5.15 2,502.6 4.13
625 0.85 797.1 5.05 2,584.2 4.05
650 0.82 833.1 4.90 2,710.8 3.94
675 0.79 861.4 4.79 2,804.0 3.86
700 0.76 889.9 4.69 2,907.5 3.77
----------------------------------------------------------------------

----------------------------------------------------------------------
Gold Price Total Indicated Waste Strip Ratio
$/oz Au -------------------------
cutoff tonnes g Au/ oz Au tonnes t waste/
g Au/t 000's tonne 000's 000's t ore

----------------------------------------------------------------------
250 2.12 453.3 9.38 136.7 7,616.4 16.8
275 1.93 562.7 8.68 157.0 9,386.8 16.7
300 1.77 664.1 8.20 175.1 11,639.7 17.5
325 1.63 1,380.2 6.87 305.0 28,391.0 20.6
350 1.51 1,898.1 6.28 383.0 38,984.4 20.5
375 1.41 2,128.9 5.86 401.2 40,417.0 19.0
400 1.32 2,265.7 5.62 409.1 40,910.3 18.1
425 1.25 2,382.6 5.42 415.2 41,189.0 17.3
450 1.18 2,543.0 5.19 424.4 42,073.1 16.5
475 1.12 2,660.2 5.02 429.2 42,128.7 15.8
500 1.06 2,779.2 4.86 434.2 42,258.6 15.2
525 1.01 2,896.9 4.72 439.8 42,695.5 14.7
550 0.96 3,027.8 4.61 448.7 44,224.0 14.6
575 0.92 3,160.7 0.00 45,264.6 14.3
600 0.88 3,277.9 0.00 45,842.6 14.0
625 0.85 3,381.2 0.00 46,341.9 13.7
650 0.82 3,543.9 0.00 48,191.3 13.6
675 0.79 3,665.4 0.00 49,113.6 13.4
700 0.76 3,797.4 0.00 50,073.0 13.2
----------------------------------------------------------------------

Open Pit Economics

The Black Fox project reserves were developed by completing apre-feasibility study for the project considering open pit mining andtwo processing options:

-- Own Milling - Construction of a new mill on the project site (base case); and

-- Toll Milling - Toll milling at a nearby mill (toll mill case).

Open Pit Economics - Own Mill - Reserve Ounces Only (base case)

The economics, using the open pit reserves only, at a gold priceof US$550 per ounce, utilizing an on-site mill processing facilitywith a capacity of 1,500 tonnes per day and tailings facility, has apositive NPV of US$36 million at a 5% discount rate and an IRR of21.65%. Variations of NPVs and discount rates can be found at thebottom of Table 6.
Table 6 Black Fox Open Pit Economics - Own Mill -
Reserve Ounces Only

======================================================================

550 BLACK FOX PROJECT - PRELIMINARY ECONOMICS
======================================================================
PRODUCTION
STATISTICS
YR -1 YR 1 YR2 YR 3
======================================================================

----------------------------------------------------------------------
OPEN PIT
ORE TONNES 540,000 540,000 540,000
-------------------------------
GRADE(G AU/TONNE) 4.71 4.60 4.71
----------------------------------------------------------------------
RECOVERY (97% OF AU) 97.00% 97.00% 97.00%
----------------------------------------------------------------------
CONTAINED OZ AU 81,837 79,884 81,827
----------------------------------------------------------------------
----------------------------------------------------------------------

----------------------------------------------------------------------
----------------------------------------------------------------------
WASTE - TONNES
ROCK 2,581,311 8,615,913 5,852,859 7,373,634
----------------------------------------------------------------------
WASTE - TONNES
TILL 5,353,452 259,344 3,892,464 200,592
----------------------------------------------------------------------

======================================================================
PRODUC-
TION -
OUNCES
GOLD

GOLD
----------------------------------------------------------------------
OPEN PIT
ORE 97.00% 79382 77488 79373
----------------------------------------------------------------------
UNDER-
GROUND
ORE 97.00% 0 0 0
----------------------------------------------------------------------
TOTAL
OUNCES 79382 77488 79373
----------------------------------------------------------------------
======================================================================

======================================================================
======================================================================
GOLD SALES 550 $43,660,185 $42,618,493 $43,654,950
----------------------------------------------------------------------
SILVER
SALES 10 $0 $0 $0
----------------------------------------------------------------------
ROYALTY
(0.0%) 0 $0 $0 $0
----------------------------------------------------------------------
TOTAL
SALES $43,660,185 $42,618,493 $43,654,950
======================================================================

----------------------------------------------------------------------
TONS WASTE
MINED 7,934,763 8,875,257 9,745,323 7,574,226
----------------------------------------------------------------------

======================================================================
OPERATING
COST
----------------------------------------------------------------------
MINING $1.48 $13,368,826 $13,740,398 $12,839,799
----------------------------------------------------------------------
PROCESSING
----------------------------------------------------------------------
LOADER
AT
CRUSHER $0.23 $124,611 $124,611 $124,611
----------------------------------------------------------------------
ORE $12.16 $6,566,400 $6,566,400 $6,566,400
----------------------------------------------------------------------

----------------------------------------------------------------------
$0.00 $0 $0 $0
----------------------------------------------------------------------
G & A $3.44 $1,936,441 $1,936,441 $1,886,441
----------------------------------------------------------------------
TOTALS $21,996,278 $22,367,851 $21,417,252
======================================================================

----------------------------------------------------------------------
COST PER
TON ORE 40.73 41.42 39.66
----------------------------------------------------------------------
COST PER
OUNCE GOLD $277.09 $288.66 $269.83
----------------------------------------------------------------------
NET
PROFIT
BEFORE
TAXES $21,663,907 $20,250,643 $22,237,699
======================================================================

======================================================================
CAPITAL
INVESTMENT $54,690,561 $179,850 $8,429,057 $8,841,667
----------------------------------------------------------------------
WORKING
CAPITAL $5,499,069
----------------------------------------------------------------------
EQUIPMENT
SALVAGE
----------------------------------------------------------------------
PRE-
PRODUCTION
MINING $0 $0 $0 $0
----------------------------------------------------------------------
NET CAPITAL
COST $54,690,561 $5,678,919 $8,429,057 $8,841,667
----------------------------------------------------------------------
NET CASH
FLOW ($54,690,561) $15,984,988 $11,821,586 $13,396,032
----------------------------------------------------------------------
CUMULATIVE
CASH FLOW ($54,690,561)($38,705,573)($26,883,987)($13,487,956)
======================================================================
NET PRESENT
VALUE
(10%)
NET PRESENT
VALUE (5%)
NET PRESENT
VALUE (3%)
NET PRESENT
VALUE (0%)
INTERNAL
RATE OF
RETURN
======================================================================



======================================================================

550
======================================================================
PRODUCTION
STATISTICS
YR 4 YR 5 YR 6 TOTALS
======================================================================

----------------------------------------------------------------------
OPEN PIT
ORE TONNES 540,000 540,000 362,749 3,062,749
--------------------- -----------
GRADE(G
AU/TONNE) 4.02 5.17 3.92 4.56
----------------------------------------------------------------------
RECOVERY
(97% OF
AU) 97.00% 97.00% 97.00% 97.00%
----------------------------------------------------------------------
CONTAINED
OZ AU 69,718 89,805 45,756 448,828
----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------
WASTE - TONNES
ROCK 7,679,428 3,455,146 1,966,525 37,524,815
----------------------------------------------------------------------
WASTE - TONNES
TILL 0 0 0 9,705,852
----------------------------------------------------------------------

======================================================================
PRODUCTION
-OUNCES
GOLD

GOLD
----------------------------------------------------------------------
OPEN PIT
ORE 97.00% 67627 87111 44383 435364
----------------------------------------------------------------------
UNDERGROUND
ORE 97.00% 0 0 0 0
----------------------------------------------------------------------
TOTAL
OUNCES 67627 87111 44383 435364
----------------------------------------------------------------------

======================================================================

======================================================================

======================================================================
GOLD SALES 550 $37,194,814 $47,911,051 $24,410,675 $239,450,169
----------------------------------------------------------------------
SILVER
SALES 10 $0 $0 $0 $0
----------------------------------------------------------------------
ROYALTY
(0.0%) 0 $0 $0 $0 $0
----------------------------------------------------------------------
TOTAL SALES $37,194,814 $47,911,051 $24,410,675 $239,450,169
======================================================================

----------------------------------------------------------------------
TONS WASTE
MINED 7,679,428 3,455,146 1,966,525 47,230,667
----------------------------------------------------------------------

======================================================================
OPERATING
COST
----------------------------------------------------------------------
MINING $1.48 $11,787,453 $7,413,188 $3,709,283 $62,858,947
----------------------------------------------------------------------
PROCESSING $0
----------------------------------------------------------------------
LOADER AT
CRUSHER $0.23 $124,611 $124,611 $83,651 $706,706
----------------------------------------------------------------------
ORE $12.16 $6,566,400 $6,566,400 $4,411,023 $37,243,023
----------------------------------------------------------------------
$0
----------------------------------------------------------------------
$0.00 $0 $0 $0 $0
----------------------------------------------------------------------
G & A $3.44 $1,836,441 $1,763,017 $1,183,161 $10,541,944
----------------------------------------------------------------------
TOTALS $20,314,905 $15,867,216 $9,387,119 $111,350,620
======================================================================

----------------------------------------------------------------------
COST PER TON
ORE 37.62 29.38 25.88 36.36
----------------------------------------------------------------------
COST PER
OUNCE GOLD $300.40 $182.15 $211.50 255.76
----------------------------------------------------------------------
NET
PROFIT
BEFORE
TAXES $16,879,909 $32,043,835 $15,023,556 $128,099,549
======================================================================

======================================================================
CAPITAL
INVESTMENT $2,591,539 $55,000 $0 $74,787,674
----------------------------------------------------------------------
WORKING
CAPITAL ($5,499,069) $0
----------------------------------------------------------------------
EQUIPMENT
SALVAGE ($4,000,000) ($4,000,000)
----------------------------------------------------------------------
PRE-
PRODUCTION
MINING $0 $0
----------------------------------------------------------------------
NET CAPITAL
COST $2,591,539 $55,000 ($9,499,069) $70,787,674
----------------------------------------------------------------------
NET CASH
FLOW $14,288,370 $31,988,835 $24,522,626 $57,311,875
----------------------------------------------------------------------
CUMULATIVE
CASH FLOW $800,414 $32,789,249 $57,311,875 $57,311,875
======================================================================
NET PRESENT
VALUE (10%) $21,036,246
-------------
NET PRESENT
VALUE (5%) $36,139,131
-------------
NET PRESENT
VALUE (3%) $43,744,937
-------------
NET PRESENT
VALUE (0%) $57,311,875
INTERNAL
RATE OF
RETURN 21.63%
======================================================================

Open Pit Economics - Toll Milling Case - Reserve Ounces Only

The economics, using the open pit reserves only, at a gold priceof US$550 per oz utilizing an off-site mill processing facility with acapacity of 1,500 tonnes per day and tailing facility has a positiveNPV of US$54 Million at a 5% discount rate and an IRR of 96.27%.Variations of NPVs and discount rates can be found at the bottom ofTable 7.
Table 7 Black Fox Open Pit Economics - Toll Milling -
Reserve Ounces Only

======================================================================

BLACK FOX PROJECT - PRELIMINARY ECONOMICS
======================================================================
PRODUCTION
STATISTICS
YR -1 YR 1 YR2
======================================================================

----------------------------------------------------------------------
OPEN PIT ORE TONNES 540,000 540,000
----------------------------------------------
GRADE(G AU/TONNE) 6.80 7.12
----------------------------------------------------------------------
RECOVERY (97% OF AU) 97.00% 97.00%
----------------------------------------------------------------------
CONTAINED OZ
AU 118,127 123,609
----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------

----------------------------------------------------------------------
WASTE - ROCK TONNES 5,470,110 10,632,750 10,281,548
----------------------------------------------------------------------
WASTE - TILL TONNES 5,599,404 3,053,916 4,093,056
----------------------------------------------------------------------

======================================================================
PRODUCTION - OUNCES
GOLD

GOLD
----------------------------------------------------------------------
OPEN PIT ORE 97.00% 114583 119901
----------------------------------------------------------------------
UNDERGROUND ORE 97.00% 0 0
----------------------------------------------------------------------
TOTAL OUNCES 114583 119901
----------------------------------------------------------------------

======================================================================

======================================================================

======================================================================
GOLD SALES 550 $63,020,669 $65,945,345
----------------------------------------------------------------------
SILVER SALES 10 $0 $0
----------------------------------------------------------------------
ROYALTY (0.0%) 0 $0 $0
----------------------------------------------------------------------
TOTAL SALES $63,020,669 $65,945,345
======================================================================

----------------------------------------------------------------------
TONS WASTE MINED 11,069,514 13,686,666 14,374,604
----------------------------------------------------------------------

======================================================================
OPERATING COST
----------------------------------------------------------------------
MINING $1.30 $16,712,561 $17,432,917
----------------------------------------------------------------------
PROCESSING
----------------------------------------------------------------------
LOADER AT CRUSHER $0.23 $124,611 $124,611
----------------------------------------------------------------------
ORE $32.58 $17,591,904 $17,591,904
----------------------------------------------------------------------

----------------------------------------------------------------------
$0.00 $0 $0
----------------------------------------------------------------------
G & A $3.56 $1,938,777 $1,938,777
----------------------------------------------------------------------
TOTALS $36,367,853 $37,088,209
======================================================================

----------------------------------------------------------------------
COST PER TON ORE 67.35 68.68
----------------------------------------------------------------------
COST PER OUNCE GOLD $317.39 $309.32
----------------------------------------------------------------------
NET PROFIT BEFORE
TAXES $26,652,816 $28,857,136
======================================================================

======================================================================
CAPITAL INVESTMENT $19,583,848 $564,850 $5,445,000
----------------------------------------------------------------------
WORKING CAPITAL $9,091,963
----------------------------------------------------------------------
EQUIPMENT SALVAGE
----------------------------------------------------------------------
PRE-PRODUCTION MINING $0 $0 $0
----------------------------------------------------------------------
NET CAPITAL COST $19,583,848 $9,656,813 $5,445,000
----------------------------------------------------------------------
NET CASH FLOW ($19,583,848)$16,996,003 $23,412,136
----------------------------------------------------------------------
CUMULATIVE CASH FLOW ($19,583,848)($2,587,845)$20,824,290
======================================================================
NET PRESENT VALUE
(10%)
NET PRESENT VALUE
(5%)
NET PRESENT VALUE
(3%)
NET PRESENT VALUE
(0%)
INTERNAL RATE OF
RETURN
======================================================================



======================================================================

BLACK FOX PROJECT - PRELIMINARY ECONOMICS
======================================================================
PRODUCTION
STATISTICS TOTALS
YR 3 YR 4
======================================================================

----------------------------------------------------------------------
OPEN TONNES
PIT ORE 540,000 157,221 1,777,221
-------------------------------- -----------
GRADE(G AU/TONNE) 7.09 5.50 6.87
----------------------------------------------------------------------
RECOVERY (97% OF AU) 97.00% 97.00% 97.00%
----------------------------------------------------------------------
CONTAINED OZ AU 123,009 27,787 392,531
----------------------------------------------------------------------
----------------------------------------------------------------------

----------------------------------------------------------------------
----------------------------------------------------------------------
WASTE - TONNES
ROCK 7,393,162 1,636,388 35,413,958
----------------------------------------------------------------------
WASTE - TONNES
TILL 0 0 12,746,376
----------------------------------------------------------------------

======================================================================
PRODUCTION
-
OUNCES
GOLD

GOLD
----------------------------------------------------------------------
OPEN PIT
ORE 97.00% 119319 26953 380756
----------------------------------------------------------------------
UNDER-
GROUND
ORE 97.00% 0 0 0
----------------------------------------------------------------------
TOTAL
OUNCES 119319 26953 380756
----------------------------------------------------------------------
======================================================================

======================================================================
======================================================================
GOLD SALES 550 $65,625,661 $14,824,293 $209,415,968
----------------------------------------------------------------------
SILVER
SALES 10 $0 $0 $0
----------------------------------------------------------------------
ROYALTY
(0.0%) 0 $0 $0 $0
----------------------------------------------------------------------
TOTAL SALES $65,625,661 $14,824,293 $209,415,968
======================================================================

----------------------------------------------------------------------
TONS WASTE
MINED 7,393,162 1,636,388 48,160,334
----------------------------------------------------------------------

======================================================================
OPERATING
COST
----------------------------------------------------------------------
MINING $1.30 $13,162,341 $3,077,945 $50,385,764
----------------------------------------------------------------------
PROCESSING $0
----------------------------------------------------------------------
LOADER AT
CRUSHER $0.23 $124,611 $36,229 $410,062
----------------------------------------------------------------------
ORE $32.58 $17,591,904 $5,121,871 $57,897,583
----------------------------------------------------------------------
$0
----------------------------------------------------------------------
$0.00 $0 $0 $0
----------------------------------------------------------------------
G & A $3.56 $1,888,777 $566,633 $6,332,965
----------------------------------------------------------------------
TOTALS $32,767,633 $8,802,679 $115,026,375
======================================================================

----------------------------------------------------------------------
COST PER TON
ORE 60.68 55.99 64.72
----------------------------------------------------------------------
COST PER
OUNCE GOLD $274.62 $326.59 302.10
----------------------------------------------------------------------
NET
PROFIT
BEFORE
TAXES $32,858,027 $6,021,614 $94,389,593
======================================================================

======================================================================
CAPITAL
INVESTMENT $5,857,610 $192,500 $31,643,808
----------------------------------------------------------------------
WORKING
CAPITAL ($9,091,963) $0
----------------------------------------------------------------------
EQUIPMENT
SALVAGE ($4,000,000) ($4,000,000)
----------------------------------------------------------------------
PRE-
PRODUCTION
MINING $0 $0 $0
----------------------------------------------------------------------
NET CAPITAL
COST $5,857,610 ($12,899,463) $27,643,808
----------------------------------------------------------------------
NET CASH
FLOW $27,000,417 $18,921,077 $66,745,785
----------------------------------------------------------------------
CUMULATIVE
CASH FLOW $47,824,708 $66,745,785 $66,745,785
======================================================================
NET PRESENT
VALUE (10%) $44,022,818
-------------
NET PRESENT
VALUE (5%) $54,027,344
-------------
NET PRESENT
VALUE (3%) $58,743,347
-------------
NET PRESENT
VALUE (0%) $66,745,785
INTERNAL
RATE OF
RETURN 96.27%
======================================================================

MDA Recommendations

MDA's primary recommendation is to confirm that the modelunderestimates the actual material in the ground. In particular, thefollowing programs are recommended by MDA to be completed during thefeasibility:

-- Check sample at least 5-10% of the material inside the mineralized zones by metallic assay zones at a zero cut-off.

-- Complete approximately 150 samples within mini-bulk sample gravity checks on drill hole composite samples.

-- Design and complete a bulk sampling program for the green carbonate and "flow ore" mineralization types. The bulk sampling program should be designed to determine differences between grade model and actual mineralization.

-- Extend the 235 level to the east and continue to develop the "flow ore" mineralization.

Apollo intends to advance the indicated and inferred resources asadvised by MDA and continue to aggressively explore the entire BlackFox property, as well as continue with final permitting for the openpit, underground mines and processing facility.

Apollo Gold Corporation

Apollo is a gold mining and exploration company with a mine inMontana (which is currently on care and maintenance), the Black Foxadvanced-stage development project in Ontario, Canada, and the HuizopaProject, an early-stage exploration project in the Sierra Madre GoldBelt in Chihuahua, Mexico.

This press release has been reviewed and approved for release byRichard Nanna, Professional Geologist, Apollo's Senior Vice-President,Exploration and Development and designated "Qualified Person" under NI43-101.

Forward-Looking Statements

This press release includes "Forward-Looking Statements" withinthe meaning of Section 21E of the United States Securities ExchangeAct of 1934, as amended. Forward-looking statements can be identifiedby the use of words such as "may," "should," "expects," "plans,""anticipates," "believes," "estimates," "predicts," "intends,""continue," or the negative of such terms, or other comparableterminology. All statements regarding the expected date of completionof the latest ore reserve calculation, the nature of that calculation,estimated resources and the results of any further sampling, areforward-looking statements that involve various risks anduncertainties. There can be no assurance that such statements willprove to be accurate and actual results and future events could differmaterially from those anticipated in such statements. Importantfactors that could cause actual results to differ materially fromthese forward-looking statements include: the results of independentCanadian NI 43-101 reports; the outcome of assays and additionalexploration sampling and drilling efforts; variations in ore grade,mining, or processing problems or issues; the availability of externalfinancing on acceptable terms and other factors disclosed under theheading "Risk Factors" in Apollo's most recent annual report on Form10-K filed with the United States Securities and Exchange Commissionand elsewhere in Apollo's documents filed from time to time with theToronto Stock Exchange, The American Stock Exchange, The United StatesSecurities and Exchange Commission and other regulatory authorities.All forward-looking statements included in this press release arebased on information available to Apollo on the date hereof. Apolloassumes no obligation to update any forward-looking statements.