Apogee Operations Update

TORONTO, ONTARIO--(Marketwired - Aug 14, 2013) - Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) provides an operational and corporate activity update.

In connection with pursuing a strategic and/or financial partner to fund the development of its Pulacayo Phase I mine & mill complex, the Company's financial advisor, Cairn Merchant Partners LP, is actively approaching potential candidates. The Company is reviewing a number of strategic alternatives, including the construction of a small mill on site.

The Company's Feasibility Study, dated effective January 17, 2013, outlines a mine and mill development plan to produce 2.5 million silver equivalent ounces per year with a positive pre-tax Internal Rate of Return of (IRR) of 47.1% and after-tax IRR of 32% at silver price of US$28.00/oz. The Company has prepared a sensitivity analysis using a lower silver price of US$19.00/oz which indicates a pre-tax Internal Rate of Return (IRR) of 22.3% and an after-tax IRR of 14.1%. The Feasibility Study can be found on the Company's SEDAR profile at www.sedar.com.

Due to the decline in silver price, the Apogee has terminated its mining activities at site and has been aggressive in reducing non-essential costs in collaboration with its primary local partner, the Pulacayo Cooperative. In particular, the Company has removed the on-site miners from the payroll in return for providing these Cooperative members' access to the Pulacayo mine to pursue artisanal mining in selected non-critical areas of the mine. The Pulacayo Cooperative has been and remains very supportive of the Company's plan to develop the mine & mill.

Chief Executive Officer, Neil Ringdahl stated "While the reduction in silver prices and current lacklustre market conditions have been disappointing, we have taken the steps necessary for the Company to preserve cash and to proactively identify and select potential strategic financial partners to develop the Pulacayo mine & mill."

The Company understands the proposed new Bolivian Mining Law is currently being reviewed by the Bolivian Ministry of Mining and Ministry of Treasury, before it is submitted to the Bolivian Congress for approval. The proposed Mining Law was drafted by a commission that included the Bolivian Government (Ministry of Mining & Corporation Minera De Bolivia or COMIBOL), the Federation of Mining Cooperatives, National Mining Chamber (small scale miners), The Federation of Unionized Miners representing the workers of private and state owned mines, and private mining companies represented by the Medium Miners Association, of which Apogee is a contributing member.

The Company believes that the current draft Mining Law, if enacted, may provide a reasonable legal framework for the mining industry in Bolivia, the highlights include the following:

• Maintains current taxation and royalties levels;
• Establishes a double deduction of exploration costs against Profit Tax;
• Opens the country to private investors allowing them to apply for mining contracts on available areas in any place of the country;
• Creates a new entity that will take some of COMIBOL's responsibilities; Lease Contracts executed with the Cooperatives will be assigned to this new entity on the same terms and conditions as those entered into with COMIBOL;
• Mining rights of the Mining Cooperatives (including contracts) will remain unchanged;
• An updated scale related to the payment of Mining Royalties allows companies to discount the amount paid as Mining Royalties against Profit Tax, in a low metal prices scenario the Profit Tax would not be paid;
• No additional government offtake/royalty from COMIBOL or from any other government agency; and
• COMIBOL's interest on contracts executed directly with COMIBOL where COMIBOL has a 51% stake would be raised to 55%.

The Company believes that if approved and enacted, the proposed new Mining Law may dramatically improve the country optics for foreign mining investors. It is important to note that the proposed law will be required to follow the review procedures established by the Bolivian regulators and may take months to become enacted, if at all.

Qualified Persons

The scientific and technical information presented in this press release has been reviewed and approved by Professor Jim Porter (FSAIMM). Professor Porter is a qualified person, as defined in National Instrument 43-101.

For more detailed project information please refer to Apogee's web site at www.apogeesilver.com.

About Apogee Silver Ltd.

Apogee Silver Ltd. is a mineral exploration and development stage company listed on the TSX Venture Exchange under the symbol APE. Apogee targets advanced, high grade silver-zinc-lead projects in South America that demonstrate potential to be developed to production. Currently its projects are located in the historic silver producing regions of southwest Bolivia and northern Chile.

Apogee's most advanced project is the 100% controlled Pulacayo-Paca project in Bolivia for which a positive feasibility study has been completed, and contains 60 millon silver ounces in the Indicated Resource category, including 27 million silver ounces in Probable Reserve category, not including base metal credits. The Company has already conducted test mining and toll milling activies at Pulacayo. This project includes the property that covered the second-largest silver mine in the history of Bolivia with a historical estimate of over 600 million silver ounces of past production.

Seven kilometers to the north of Pulacayo lies the Paca project which contains 25 million silver ounces in the Inferred Resource category. In Chile, the Cachinal project contains over 18 million silver ounces in the Indicated Resource category, not including gold and base metal credits.

Cautionary Note Regarding Forward-Looking Information:

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements, projections and estimates with respect to results of the feasibility study and the mineral reserve and resource estimate, the ability of the Company to secure any strategic partners and or investors; the ability of the Company to resume mining activities at the Pulacayo property, potential effect of termination of mining activities at the Pulacayo property,, the anticipated timing and impact of the proposed amendments to the Bolivian Mining Law, anticipated timing regarding the receipt of the Company's environmental permit,the future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Pulacayo-Paca project, the ability to obtain financing and/or financial partners; and the impact of concerns relating to permitting, reusltation, governmental and local community relations. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Estimates underlying the results of the feasibility study arise from engineering, geological and costing work of TWP Sudamerica, Mercator Geological Services, P&E Mining Consultants and the Company. See the technical report relating to the feasibility study for a description of all relevant estimates, assumptions and parameters.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.