Apex Silver Reports First Shipments of Concentrate From San Cristobal

    DENVER, October 22 /CNW/ - Apex Silver Mines Limited (AMEX:  SIL) today
reported the first shipment of zinc concentrates from the San Cristobal mine
in Bolivia. The initial approximately 3,500 dry metric tonne shipment of lead,
zinc and silver bulk concentrate produced during the commissioning and startup
of the plant left the port of Mejillones, Chile on September 22, 2007, with
the first sale recorded in the third quarter. This has now been followed with
a shipment of 9,100 dry metric tonnes of zinc concentrate to smelters in Asia
on October 18, 2007. Concentrate shipments will continue as the plant ramps up
to full production.

    As was announced, the San Cristobal plant reached mechanical completion
in late June 2007 and began start-up commissioning in early July. Initial
production was achieved during August. The company expects to reach the full
production rate during the fourth quarter of 2007.

    Apex Silver, together with Sumitomo, which owns 35% of the San Cristobal
mine, continues to be engaged in ongoing discussions with government
representatives regarding various proposals to change mining taxation in
Bolivia. To date there have been no changes to the existing mining tax regime.

    Apex Silver also announced that the San Cristobal project lenders had
approved the updated operating plan and related credit facility amendments,
which became effective in late September. The amendments include use of higher
metals prices to determine compliance with certain financial covenants,
adjustments to increase the mandatory cash flow sweep to 45% of excess cash
flow and to require a larger percentage of principal to be paid in earlier
years, the purchase by San Cristobal of at-the-money lead put options at a
purchase price of approximately $10 million to protect the additional cash
flow needed for the adjusted repayment schedule, and funding by Apex Silver of
a $91 million margin account for the benefit of the two lenders holding the
mandatory hedge positions. The margin account should decrease by 33% at the
end of each of 2008, 2009 and 2010.

    The company is completing the determination of its third quarter
financial results, which will reflect a non-cash loss of approximately $137
million for the quarter ended September 30, 2007, related to its metals
derivative positions due to metals price increases in the third quarter.

    The company's third quarter financial results may also reflect a negative
mark-to-market adjustment to the carrying value of certain auction rate
securities ("ARS") held by the company. Apex Silver maintains a portion of its
investments in ARS with investment ratings ranging from A to AAA. The ARS are
floating rate securities with long-term nominal maturities of 25 to 30 years
but they are marketed by financial institutions with auction reset dates at 7,
28, or 35 day intervals to provide short term liquidity. Beginning in August
2007 a number of ARS auctions began to fail and the company is currently
holding approximately $71.6 million in ARS for which the reset auctions have
failed. The failed auctions have resulted in higher interest rates being
earned on these investments, but the investments currently lack liquidity. The
company is currently evaluating the fair market value of the ARS it holds, and
accordingly there could be a mark-to-market adjustment to the carrying value
of those investments. Based on the company's current cash and investment
balances and expected operating cash flows, it does not anticipate that the
lack of liquidity for the ARS will adversely affect its ability to conduct its

    Graham Buttenshaw has been appointed Vice President, Operations for the
company. Mr. Buttenshaw was previously the Vice President and General Manager
of the San Cristobal project. Mr. Buttenshaw has over 30 years of mining
industry experience, including eight years with contract miners in various
executive management roles and 22 years with major mining companies in
technical, operational and executive management roles.

    Apex Silver is a mining exploration and development company. Its
65%-owned San Cristobal project is the world's largest development in silver
and zinc. The Ordinary shares of Apex Silver trade on the American Stock
Exchange under the symbol "SIL".

    This press release contains forward-looking statements regarding the
company, within the meaning of Section 27A of the Securities Act and Section
21E of the Exchange Act, including statements regarding the timing of
achieving the full production rate for the San Cristobal project, the release
of the hedge margin account in future years, the company's future liquidity,
and the company's financial results for the third quarter of 2007. Actual
results relating to any and all of these subjects may differ materially from
those presented. Factors that could cause results to differ materially
include, problems or delays in operations, variations in ore grade and
processing rates, problems in emerging financial markets, the company's
ability to meet its covenant obligations under its project finance facility
and political unrest and uncertainty in Bolivia. The company assumes no
obligation to update this information. Additional information concerning
factors that could cause actual results to differ materially from those in the
forward-looking statements can be found in the company's Form 10-K filed with
the SEC for the year ended December 31, 2006.

For further information:

For further information: Apex Silver Mines Corporation Jerry Danni,
303-228-0336 Senior Vice President Corporate Affairs

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