Apollo Gold Reports Fourth Quarter and Year End 2006 Results

Business Wire, April 3, 2007

DENVER -- Apollo Gold Corporation ("Apollo" or the "Company") (AMEX:AGT) (TSX:APG) reports the results for the three months and year ended December 31, 2006 (in US dollars, unless otherwise indicated) as follows.

Results for the Fourth Quarter 2006 Compared to Fourth Quarter 2005

Apollo's revenues from continuing operations for the fourth quarter of 2006 were nil as compared to $7.3 million for the fourth quarter 2005. This decrease is due to the cessation of milling operations on May 12, 2006 at Montana Tunnels. Apollo incurred a net loss of $3.4 million for the fourth quarter of 2006 as compared to a net loss of $4.2 million, or $0.04 per share, for the fourth quarter 2005.

Results for 2006 Fiscal Year Compared to 2005 Fiscal Year

Apollo's revenues from continuing operations for the year ended December 31, 2006 decreased 76% to $10.2 million, compared to $43.3 million for the year ended December 31, 2005. This decrease is due to the cessation of milling operations on May 12, 2006 at Montana Tunnels. Apollo incurred a net loss of $15.6 million, or $0.13 per share, for the year ended December 31, 2006, as compared to a net loss of $22.2 million, or $0.22 per share, for the year ended December 31, 2005.

2006 Highlights

Montana Tunnels Mine

* At the Montana Tunnels mine (the "Mine"), open pit mining activity was suspended on October 21, 2005 for safety reasons due to increased wall activity on the eastern side of the open pit. Following the suspension of mining, the mill continued to process ore from stockpiled material and produce gold dore and lead-gold and zinc-gold concentrates until May 12, 2006 when all operations ceased and the property was placed on care and maintenance. For the year ended December 31, 2006, a total of 4,959 ounces of gold, 116,004 ounces of silver, 1,196,317 lbs of lead and 3,040,058 lbs of zinc were produced.

* On July 28, 2006, we entered into a joint venture agreement (the "JV Agreement")with Elkhorn Tunnels, LLC ("Elkhorn") in respect of the Mine, pursuant to which Elkhorn was granted a 50% interest in the Mine in exchange for financial contributions. We are the operator of the Mine.

* Following the signing of the JV Agreement, the Mine commenced an open pit wall remediation program in August 2006, which called for removal of approximately 7 million tons of waste over a six month period and encompassed the laying back of the east and south east sectors of the pit wall and rebuilding the access ramp. As at December 31, 2006, we had excavated approximately 5.8 million tons of remediation waste and were working on the ramp system below switchback # 4 which is 100 feet above the open pit bottom and the ore body. Upon reaching the open pit bottom in January 2007, waste material removal commenced to expose the ore body. Mill personnel were hired in late 2006 and early 2007 to begin maintenance work in preparation for the mill start up, which occurred on March 1, 2007 and shipments of lead-gold and zinc-gold concentrates commenced during the second week of March 2007.

Black Fox Development Property

* In August 2006 we reported reserves and resources under a Canadian National Instrument NI 43-101 report. The reserves and resources were based upon the 2003 to 2006 exploration program and included a pre-feasibility study of developing an open pit mine on the Black Fox property. This study did not consider any underground material. We report no reserves at Black Fox under U.S. Securities and Exchange Commission Industry Guide 7, which requires a final bankable feasibility study. The table below summarizes the Black Fox Total Mineral Resource:

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* Black Fox Open Pit Economics - Using only the open pit reserves of 448,000 ounces, at a gold price of $550 per ounce, an on site mill processing facility with a capacity of 1,500 tonnes per day and tailings facility has a positive net present value of $36 million at a 5% discount rate and an internal rate of return of 21.63%.

Huizopa Exploration Project

* Apollo entered into an agreement with the Ejido Huizopa which gives the Company a right to use Ejido land covering the 12,800 hectares of the Company's mining concessions in Huizopa for all activities necessary for the exploration, development and production of potential ore deposits.

* A geophysical program was implemented during the year and several prospective drilling sites were identified for the 2007 drilling program.

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Financial Condition and Liquidity

At December 31, 2006, we had cash and cash equivalents of $4.5 million, compared to $0.1 million at December 31, 2005. The increase in cash from December 31, 2005 is primarily the result of (i) contributions of $9.3 million from Elkhorn, our joint venture partner at the Montana Tunnels mine, (ii) the release of $11.0 million in January 2006 from the restricted cash account held at December 31, 2005, as collateral security for our 12% Series-B Secured Convertible Debentures and (iii) net proceeds of $8.8 million from the issuance and sale of common shares and warrants, offset by operating cash out flows of $11.6 million from operating activities, primarily from the Montana Tunnels operation. At March 1, 2007, we had cash and short-term investments of $8.7 million, which includes net proceeds of $7.9 million from our private placement of convertible debentures and warrants in February 2007, less the payment of $2.6 related to our Huizopa project in February 2007.