Apollo And Linear Report Continuing Ore Grade Improvements At The Black Fox Mine

Apollo Gold Corporation (TSX: APG) (NYSE Amex: AGT) (“Apollo”) and Linear Gold Corp. (TSX: LRR) (“Linear”) report performance improvements at the Black Fox Mine are continuing with operating results during April and May 2010 demonstrating significant increases in ore grade and corresponding gold production compared to results for the first quarter of 2010 (“Q1 2010”).

During April and May 2010, the Black Fox Mine produced over 12,000 ounces of gold from 119,000 tonnes of ore milled at an average gold grade of approximately 3.5 grams per tonne at a 93% recovery rate. The average ore grade was approximately 30% higher than Q1 2010 and in line with the mine plan.

For the full year 2010, Apollo expects to produce 90,000 to 100,000 ounces of gold at total cash costs of between $500 and $550 per ounce. Production is expected to continue to trend higher and cash costs are projected to continue to trend lower during the second half of the year as underground ore production is blended with open pit ore production and expected to result in a higher overall ore grade at Black Fox.

During May 2010, Black Fox recorded its first sale of gold at the spot price, selling 1,019 ounces of gold at an average gold price of $1,220 per ounce. All previous gold sales since the commencement of production in late May 2009 were delivered into Apollo’s gold hedge book at an approximate gold price of $876 per ounce. For the period June through December 2010, Apollo expects to sell between 32,000 and 42,000 ounces of its estimated gold production to the spot market with a balance of approximately 31,700 ounces for delivery into the hedge book. This would reduce Apollo’s hedge book to 142,685 ounces of gold at year-end 2010.

Underground Development Update

At the Black Fox Mine, construction work has begun in preparation for initial underground mining of ore in the third quarter of 2010 (“Q3 2010”). Cementation Inc., the underground development and ventilation raise bore contractor, has been mobilizing its crews and equipment to the property. All engineering and electrical design work and concrete foundations for surface facilities as well as the ventilation raise bore drill pad have been completed. Mobile mining equipment, including three jumbo drills, three scoop trams, two 50-tonne capacity haul trucks and one 40-tonne capacity haul truck, has been ordered for delivery in Q3 2010.