Apollo Gold Announces US $3.0 Million ``Bought Deal'' Bridge Financing and US $10.5 Million Debenture ``Agency'' Offering.

DENVER -- Apollo Gold Corporation ("Apollo" or the "Company") (TSX:APG) (AMEX:AGT) is pleased to announce a Bridge Financing in which Regent Mercantile Bancorp Inc., of Toronto, Canada (Regent), acting in an exclusive capacity, will purchase US $3,000,000 of debentures of the Company as a bridge loan financing (the Bridge Financing). The Bridge Financing will be made on an underwritten basis by way of a private placement to qualified investors in British Columbia, Alberta, Ontario and such other jurisdictions outside the United States as the Company and Regent may agree. Closing is expected to occur on or about October 14, 2004.

This Bridge Facility will be retired by a subsequent Offering (the Debenture Offering) of up to 10,500 Convertible Debentures at US $1,000 per Debenture, for a total of US $10,500,000 that will be arranged on a best-efforts basis with Regent serving as lead manager. The Company has also agreed to grant to Regent an option, exercisable at any time prior to closing, to increase the size of the Debenture Offering to US $15,000,000.

The Debentures will yield 12% per annum payable quarterly over a three-year term. The Debentures will be offered to accredited investors in British Columbia, Alberta, Ontario and such other jurisdictions outside the United States as the Company and Regent may agree.

The Debentures are convertible into common shares of the Company at the sole option of the holder, provided that the conversion rate will be determined by the Agent and the Company based on the market price of the common shares of the Company at closing.

Subscribers to the Debenture will also receive share purchase warrants of the Company. For each Debenture purchased, 600 warrants will be issued. Each warrant will entitle the holder to purchase a share of the Company stock at a price of US $0.80 for the period of three years from the closing of the Debenture Offering.

Closing of the Debenture Offering is expected to occur on November 16, 2004, or such alternate date as may be agreed upon by the Company and Regent.

The closing of the Debenture Offering and the Bridge Financing are subject to certain conditions, including all required regulatory approvals and the completion of definitive documentation.

This press release is not an offer of securities for sale in the United States. The securities described herein may not be offered or sold in the United States absent registration or an exemption from registration, and any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management as well as financial statements. This release shall not constitute an offer to sell or solicitation of an offer, solicitation or sale would be unlawful.

Apollo is a gold mining company with operating mines in Nevada and Montana, an advanced-stage development project, Black Fox, along the productive Destor-Porcupine Fault east of the Timmins Gold Camp in Ontario, Canada, and an early-stage exploration project in the Sierra Madre Gold Belt in Chihuahua, Mexico, called the Huizopa project.

FORWARD-LOOKING STATEMENTS

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements regarding the anticipated financings 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: the results of a due diligence investigation by Regent, a material adverse change in the Company's condition, or failure to complete definitive documentation, and other factors disclosed under the heading "Risk Factors" and elsewhere in Apollo 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.