Apollo Gold Reports 1st Quarter Production And Black Fox Mine Commencing Underground Development

Apollo Gold Corporation (“Apollo” or the “Company”) (TSX: APG) (NYSE Amex: AGT) reports that it sold 15,796 ounces of gold in the first quarter ended March 31, 2010 (“Q1 2010”).

During Q1 2010, approximately 2.1 million tonnes, including 190,000 tonnes of ore, was mined from the Black Fox Mine. The Black Fox Mill processed 178,000 tonnes of ore at an average grade of gold of 2.7 grams per tonne (“gpt”) for a total gold production of 14,175 ounces. Total cash costs in Q1 2010, which will be reported with the Company’s quarterly financial results on May 10, 2010, are expected to be between US$625 and US$635 per ounce sold.

Commenting on the Black Fox operations, Vice President of Operations Tim G. Smith said, “Mine management and staff have addressed and now better understand the grade control issues, which occurred during 2009 and into January and February 2010. We are now seeing a significant improvement in the grade. The average gold grade at the mill improved to approximately 3.0 gpt in March 2010 and further increased to almost 3.5 gpt in April 2010 and we continue to see the trend of higher grades in May. We are expecting progressively higher gold production for the remainder of 2010. The July start up of underground mining operations is expected to augment production from the open pit with higher grade and higher margin ounces of gold from the underground mine.”

Table One: Black Fox Mine Q1 2010 Production and Sales Highlights
		Q1 2010
Ore tonnes mined		190,000
Total tonnes mined		2,062,000
Tonnes milled		178,000
Tonnes per day milled		1,978
Head grade of ore (gpt)		2.7
Recovery(%)		93
Gold produced (oz)		14,175
Gold sold (oz)		15,796

Notes:		1. Tonnes above are rounded to the thousand.
		2. Recovery is rounded to the whole number.

Underground Development

Apollo reports that underground development is commencing on schedule this week at Black Fox. Apollo has awarded the Black Fox underground development contract to Cementation Inc., which is mobilizing its crews and equipment from its regional base in North Bay, Ontario to Black Fox. Initial ore production from the underground mine is expected to commence in July of 2010, starting at approximately 100 tonnes per day (“tpd”) and rising to approximately 300 tpd by the end of the third quarter of 2010 and to 750 tpd by the end of 2010.