Apollo Gold Provides Update On Black Fox Mine’s Gold Production Growth And Commencement Of Underground Development In Second Quarter

Apollo Gold Corporation (TSX: APG) (NYSE Amex: AGT) (“Apollo”) announces that Apollo’s Black Fox Mine is expected to commence underground development during the second quarter of 2010 (“Q2 2010”), and that initial ore production from the underground mine is expected to commence during the third quarter of 2010 (“Q3 2010”). All currency referenced in this news release is in U.S. dollars.

Black Fox Mine 2010 Production Outlook

In 2010, the Black Fox Mine is expected to produce 100,000 ounces of gold from operating the Black Fox Mill at approximately 2,000 tonnes per day (“tpd”) at an average gold grade of 4.3 grams per tonne (“gpt”) at a 95% recovery. Total cash costs for 2010 are expected to be $500-$550 per gold ounce sold. ¹ As previously described in Apollo’s news release of March 17, 2010, higher production rates resulting in lower cash costs per ounce are expected in the second half of 2010, compared to the first half of 2010. This is due to production sequencing in the new mine plan, including new underground production, and progressive improvements from the ore grade control programs first implemented in the second half of 2009.

In line with the 2010 production plan, over the balance of the year, the Black Fox Mine is expected to achieve the following milestones:

From the New Underground Mine

• Initiate contract development of the new underground mine using the existing ramp decline in Q2 2010;
• Complete approximately 2,000 meters (“m”) of underground development by the end of 2010;
• Commence initial underground ore production in Q3 2010, producing between 16,000 and 18,000 ounces of gold in 2010;
• Achieve an average underground production rate of 25,000-30,000 tonnes of ore (275-325 tpd) at an average gold grade of approximately 7.0 gpt in 3Q10 and 45,000-50,000 tonnes of ore (495-545 tpd) at approximately 7.0 gpt in the fourth quarter of 2010 (“Q4 2010”); underground mining costs per tonne of ore are estimated to be between $95 and $105 per tonne in 2010;
• Reduce underground mining costs by approximately 25% to $70-$80 per tonne of ore for higher margin gold production in 2011 from economies of scale efficiencies running at the steady rate of 750 tpd;
• Complete a new decline access (approximately 1,400 m) from the floor of the open pit by year-end 2010; and
• Reach a steady rate of production from the underground mine of 750 tpd by the end of Q4 2010, in order to produce 10%-20% increased total gold production of 110,000 to 120,000 ounces of gold from Black Fox in 2011, compared to 2010;

From the Open Pit Mine

• Start the Phase 2 overburden stripping, subject to expected receipt of permits, in Q2 2010 (with no expected impact to continuing open pit mining); and
• Commence Phase 2 initial ore production in Q4 2010.

The new underground mine will begin underground development from the existing ramp access. This access was part of former underground mine workings, which produced approximately 210,000 ounces of gold from 1997 until ceasing operations in 2001. Apollo purchased the property in 2002.