Apollo Gold Announces Second Quarter 2007 Results With Improved Production and Profits.

DENVER -- Apollo Gold Corporation ("Apollo" or the "Company") (TSX:APG) (AMEX:AGT) is pleased to announce its operating results for the second quarter of 2007. Apollo recorded a net income of $2.4 million, or $0.02 per share, for the three months ended June 30, 2007, as compared to a net loss of $2.6 million, or $0.02 per share, for the three months ended June 30, 2006. The net loss for the six months ended June 30, 2007 was $2.2 million, or $0.02 per share, compared to a net loss of $6.8 million, or $0.06 per share, for the same period in 2006. Unless otherwise indicated, all dollar amounts are reported in US currency.

R. David Russell, President and CEO of Apollo, said, "I am very pleased with the quarterly results and the fact that we recorded our first ever income in a quarter, which is another significant milestone indicating the progress that Apollo Gold has made during 2007. The Montana Tunnels mine continues to perform well leading Apollo to record both profit in the quarter and positive cash flow from operating activities. I expect further improvement from the mine during the second half of 2007."

Second Quarter 2007 Highlights

    --  Apollo Gold's 50% share of production for the quarter from the
        Montana Tunnels mine (which is a joint venture with Elkhorn
        Tunnels, LLC) was:
                Gold                 5,483 ozs
                Silver              86,267 ozs
                Lead                1,892,000 lbs
                Zinc                3,488,000 lbs

    --  Total cash costs(1) per ounce of gold for the quarter on a
        by-product basis were minus $237. Total cash costs on a
        co-product basis were as follows:
                Gold                $406 per oz
                Silver              $8.11 per oz
                Lead                $0.70 per lb
                Zinc                $1.05 per lb

    --  The results of a new ore reserve at Black Fox were published
        showing proven and probable reserves of 1,000,000 ounces of
        gold. A Canadian National Instrument 43-101 ("NI 43-101") was
        filed on August 14, 2007. Open pit reserves are 625,000 ounces
        of gold at an average grade of 5.8 grams per tonne.
        Underground reserves are 377,000 ounces of gold at an average
        grade of 10.6 grams per tonne.

    --  At Black Fox, our third party consultant, SRK Consulting, Inc.
        ("SRK"), Denver, Colorado, has commenced work on a bankable
        feasibility study which we expect to be completed in the first
        quarter of 2008.

    --  At Black Fox a 20,000 meter drill program commenced in June
        2007. The objective of the drill program is (a) to expand the
        mineralization along strike and down dip of the current
        reserves/resources, and (b) to infill drill certain targets
        identified by the NI 43-101 with the objective of converting
        some resources into reserves before completion of the bankable
        feasibility study.

Montana Tunnels Mine

At the Montana Tunnels mine the open pit remediation program was completed in February 2007 and the mill resumed operations on March 1, 2007.

During the second quarter 2007, approximately 3,400,000 tons were mined, of which 1,367,000 tons were ore, giving a strip ratio of 2.49. The mill processed 1,246,000 tons of ore at an average throughput of 13,700 tons per day for the quarter and payable production was 11,000 ounces of gold, 173,000 ounces of silver, 3,784,000 lbs of lead and 6,976,000 lbs of zinc. Apollo's share of this production was 50%. The mine commenced a project to increase mill throughput by 1,000 tons per day by re-commissioning a larger primary crusher (last utilized in 2005) which is scheduled for completion at the end of August 2007.

    Ore mined               1,367,000 tons
    Waste mined             2,024,000 tons
    Total mined             3,391,000 tons

    Ore milled              1,246,000 tons

    Grade:                                    Recoveries:
        Au ounces per ton   0.0136                Au             72.9%
        Ag ounces per ton   0.2420                Ag             73.3%
        Pb %                0.2160                Pb             78.1%
        Zn %                0.4455                Zn             76.6%

Forecast - We continue to believe that we will meet our previously announced production forecast for the Montana Tunnels mine for the period from March 1, 2007 to December 31, 2007 of 40,000 ozs of gold, 250,000 ozs of silver, 5,750,000 lbs of lead and 12,500,000 lbs of zinc. Apollo's share of this forecasted production would be 50%.

Black Fox

At the end of the second quarter 2007, a new mineral reserve and resource estimate was prepared by SRK. SRK has confirmed that the reserve and resource study complies in all respects with NI 43-101 guidelines. The table below summarizes the Black Fox Total Mineral Reserve:

Black Fox - Probable Reserves as of June 30, 2007

[TABLE OMITTED]

The minable reserve was calculated based on a gold price of US$525/oz which is approximately the three-year trailing average. The average total cash cost per ounce of gold was calculated at $236 per ounce.

In addition to the reserves above, the NI 43-101 contains the indicated and inferred resources shown in the tables below:

Black Fox - Indicated Resources as of June 30, 2007(1)

[TABLE OMITTED]

Black Fox - Inferred Resources as of June 30, 2007(2)

[TABLE OMITTED]

Since we report our mineral reserves to both NI 43-101 and SEC Industry Guide 7 standards, it is possible for our reserve figure to vary between the two. Where such a variance occurs it will arise from the differing requirements for reporting mineral reserves. For example, the NI 43-101 has a minimum requirement that reserves be supported by a pre-feasibility study, whereas SEC Industry Guide 7 requires support from a full feasibility study done to bankable standards. The Black Fox project thus reports reserves under NI 43-101, but reports no reserves under SEC Industry Guide 7 as a final bankable feasibility study has not been completed.

[TABLE OMITTED]

Apollo Gold Corporation

Apollo is a gold mining and exploration company which operates the Montana Tunnels mine, which is a 50% joint venture with Elkhorn Tunnels, LLC, 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.

FORWARD-LOOKING STATEMENTS 

This press release includes forward-looking statements the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended, with respect to our financial condition, results of operations, business prospects, plans, objectives, goals, strategies, future events, capital expenditure, and exploration and development efforts. Forward-looking statements can be identified by the use of words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "continue," or the negative of such terms, or other comparable terminology. These statements include comments regarding future production, throughput rates, further improvement at the Montana Tunnels mine ("Mine"), cash flow from the Mine, the timing of completion of the large primary crusher at the Mine, and the timing of completion of and results of feasibility studies at Black Fox. These forward looking statements are subject to numerous risks, uncertainties and assumptions including unexpected changes in business and economic conditions, the results of current and future exploration activities, and other factors disclosed under the heading "Risk Factors" in Apollo's Annual Report on Form 10-K for the year ended December 31, 2006 and elsewhere in documents that Apollo files from time to time with the Toronto Stock Exchange, the American Stock Exchange, the United States Securities and Exchange Commission and other regulatory authorities. There can be no assurance that future developments affecting the Company will be those anticipated by management. The forecasts contained in this press release constitute management's current estimates, as of the date of this press release, with respect to the matters covered thereby. Apollo disclaims any obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.

NON-GAAP FINANCIAL MEASURES

The term "total cash cost" is a non-GAAP financial measure and is used on a per ounce of gold basis. Total cash cost is equivalent to direct operating cost as found on the Consolidated Statements of Operations and includes by-product credits for payable silver, lead, and zinc production. We have included total cash cost information to provide investors with information about the cost structure of our mining operation. This information differs from measures of performance determined in accordance with GAAP in Canada and in the United States and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. This measure is not necessarily indicative of operating profit or cash flow from operations as determined under GAAP and may not be comparable to similarly titled measures of other companies.

1 "Total cash costs" is a non-GAAP financial measure. Please see the note regarding non-GAAP financial measures at the end of this press release.