Production Restarts at the Montana Tunnels Mine



    DENVER, March 2 /CNW/ - Apollo Gold Corporation ("Apollo" or the
"Company") (TSX: APG) (AMEX:   AGT) is pleased to report that the mill at its
Montana Tunnels mine (the "Mine"), which is located near Helena, Montana, has
commenced production. The Mine is a 50/50 joint venture with Elkhorn Tunnels,
LLC ("Elkhorn"), an affiliate of Calim Private Equity LLC ("Calim"), with
Apollo acting as the manager of the Mine.

    Consistent with our previously announced schedule, the Montana Tunnels
mill was placed into service on March 1, 2007. The mill consists of crushing
and grinding circuits followed by gravity gold, flotation and filtration
circuits. The mill is expected to operate at an average of 15,000 tons per day
for the balance of 2007. The products expected to be produced will be gold and
silver dore, a lead-silver-gold concentrate and a zinc-silver-gold
concentrate. Both concentrates will be transported via rail to the
Teck-Cominco smelter located at Trail, British Columbia, Canada. The dore will
be refined in Salt Lake City by Johnson Matthey Inc. Refineries.

    The pit wall stabilization work and the construction of a new haulage
ramp, which were started approximately seven months ago, were completed in
January 2007. Since then, we have continued to move waste rock from the pit
bottom to expose the ore body and stockpile some lower grade ore alongside the
mill. As at February 28, 2007, there were 333,000 tons of lower grade material
and 45,000 tons of reserve grade ores stockpiled alongside the mill for future
processing. During 2007, ore delivery from the Mine to the mill is expected to
exceed mill capacity, which would result in an increase in the stockpiles.

    As at December 31, 2006, the ore reserves at the Mine were 35.69 million
tons containing 551,669 ounces of gold and 414.0 million pounds of zinc. The
grade model was not modified in 2006 as no new definition drilling was
conducted during the year. The following table summarizes the proven and
probable reserves.

    
          Proven and Probable Reserves Dec. 31, 2006 Montana Tunnels

      Pit     Classification   Tons       Au      Ag    Pb    Zn    Au
      Design                                                       Ounces
    --------- ------------------------- ------- --------------------------
    L-Pit     Proven        10,357,546  0.0159  0.169 0.219 0.587 164,916
    --------- ------------------------- ------- --------------------------
              Probable         214,402  0.0151  0.180 0.209 0.509   3,236
    --------- ------------------------- ------- --------------------------

    --------- ------------------------- ------- --------------------------
    Total     2P Reserves   10,571,948  0.0159  0.170 0.219 0.585 168,152
    --------- ------------------------- ------- --------------------------

    --------- ------------------------- ------- --------------------------
    Total M-  Probable
     Pit                    25,120,423  0.0153  0.227 0.166 0.578 383,517
    --------- ------------------------- ------- --------------------------

    --------- ------------------------- ------- --------------------------
    Total     2P Reserves
     Reserves               35,692,371  0.0155  0.210 0.181 0.580 551,669
    --------- ------------------------- ------- --------------------------
    

    The above ore reserves were calculated using the past three years average
metal prices: Gold -$485/oz., Silver - $8.50/oz., Lead - $0.47/lb., and Zinc -
$0.87/lb. The above reserves conform to the Standards of the Canadian National
Instrument 43-101.

    David Russell, President and CEO of Apollo, said, "I am very happy with
the timely and smooth start of the Montana Tunnels mill. The Montana Tunnels
management and workforce have worked hard on this remediation project over the
past seven months. They have met all their development goals and timeframes to
date. With the mill starting on schedule, the Mine personnel have shown that
their plans were developed properly and executed correctly. We are now looking
forward to future production at the Mine."

    Patrick Imeson, President and CEO of Calim, stated, "We are very pleased
with the start-up at the mill and progress to date and believe the Mine to be
a great asset with capable management and operational capability. Our strategy
is to search out niches where we can develop undervalued opportunities, that
larger players in an industry have overlooked or are unable to exploit, and
Montana Tunnels is such an asset."

    Apollo Gold Corporation

    Apollo is a gold mining and exploration company with a mine as described
above as the Montana Tunnels Mine, the Black Fox advanced stage development
project in Ontario, Canada, and the Huizopa Project, an early stage
exploration project in the Sierra Madres in Chihuahua, Mexico.

    Calim Private Equity, LLC

    Colorado-based, Calim Private Equity LLC focuses on investment and
company development opportunities created by new technologies, expanding
markets or underdeveloped assets.

    This press release has been reviewed and approved for release by Richard
Nanna, Professional Geologist, Apollo's Senior Vice-President, Exploration and
Development and designated "Qualified Person" under NI 43-101.

    FORWARD-LOOKING STATEMENTS

    This press release includes "Forward-Looking Statements" within the
meaning of section 21E of the United States Securities Exchange Act of 1934,
as amended. Forward-looking statements can be identified by the use of words
such as "may," "should," "expects," "plans," "anticipates," "believes,"
"estimates," "schedules," "predicts," "intends," "continue," or the negative
of such terms, or other comparable terminology. All statements regarding the
future operation of the Montana Tunnels mill, production at the Montana
Tunnels mine, the future level of ore stockpiles at the Montana Tunnels mine,
planned remediation activities, to otherwise successfully effect the
remediation program for the Montana Tunnels Mine, and statements respecting
reserves with respect or relating to the Montana Tunnels mine are
forward-looking statements that involve various risks and uncertainties. There
can be no assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from these forward-looking statements include: additional
operational and remediation problems at the Montana Tunnels mine, the failure
of Elkhorn to make the expected contributions under the joint venture
agreement, unexpected changes in business and economic conditions, political
or economic instability, significant decreases in gold, zinc or lead prices,
changes in interest and currency rates, local and community impacts and
issues, labor accidents, environmental risks and other factors disclosed under
the heading "Risk Factors" in Apollo's most recent annual report on Form 10-K
filed with the United States Securities and Exchange Commission and elsewhere
in Apollo's documents filed from time to time with the Toronto Stock Exchange,
The American Stock Exchange, The United States Securities and Exchange
Commission and other regulatory authorities. All forward-looking statements
included in this press release are based on information available to Apollo on
the date hereof. Apollo assumes no obligation to update any forward-looking
statements.




For further information:

For further information: Apollo Gold Corporation Investor Relations
Marlene Matsuoka, 720-886-9656 Ext. 217 Toll Free: 1-877-465-3484
info@apollogold.com www.apollogold.com

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