Apollo Gold Unwinds Foreign Currency Hedges And Pays Down Debt By ~US$8 Million

Apollo Gold Corporation (TSX: APG)(NYSE Amex: AGT) (“Apollo”) and Linear Gold Corp. (TSX:LRR) (“Linear”) announce that Apollo has unwound its Canadian dollar currency hedges that were originally entered into in connection with Apollo’s US$70 million Black Fox Project Facility Agreement (the “Facility Agreement”). As a result of this action, gross proceeds to Apollo were approximately US$8.2 million, which will be used to reduce the debt outstanding under the Facility Agreement.

Following this repayment, Apollo’s indebtedness will be reduced to approximately US$51.8 million. Additionally, post closing of the proposed business combination of Apollo and Linear (the “Merger”), expected to be completed by the end of the second quarter of 2010, the combined company will further repay US$10 million to the project lenders to reduce the Project Facility to approximately US$41.8 million.

Enhanced Financial Flexibility

R. David Russell, Chief Executive Officer (“CEO”) and President of Apollo, said, “We acted opportunistically to close out our in-the-money foreign currency contracts in order to reduce our indebtedness. This US$8.2 million repayment, together with the US$10 million repayment from proceeds of Linear’s Cdn$25 million private placement on March 19, 2010, have reduced interest payments annually by US$1.3 million.”

Wade K. Dawe, CEO and President of Linear, said, “The collapse of the foreign currency hedge to further reduce debt is an important step in our plan to strengthen Apollo’s balance sheet. Following completion of the Merger, we believe that the recapitalized company will be in a strong position to emphasize underground production at Black Fox and to take advantage of growth opportunities for our shareholders going forward. Having significantly deleveraged the balance sheet, our new company is well positioned as an emerging Canadian mid-tier gold producer.”

Linear and Apollo entered into a definitive arrangement agreement (the “Agreement”), dated March 31, 2010, in respect of the previously announced business combination pursuant to which the businesses of Apollo and Linear will be combined by way of a court approved plan of arrangement, subject to a number of conditions precedent, including approval of the shareholders of each of Apollo and Linear. The Agreement provides that Linear shareholders will receive 5.4742 Apollo shares for each Linear share.