Apollo Gold Completes US$6.225 Million First Tranche Unit Financing.

DENVER -- Apollo Gold Corporation ("Apollo" or the "Company") (TSX: APG) (AMEX: AGT) is pleased to announce the closing of the first tranche of its previously announced offering (the "Offering") of 10,625,000 units (the "Units") at US$0.75 per Unit. The Offering is being underwritten on a best efforts basis. The price of the Units was amended to US$0.75 per Unit from the previously announced US$0.80 per Unit.

The Company placed today 8,299,999 Units for aggregate gross proceeds of US$6,225,000 for the first tranche of the Offering. Each Unit consists of one common share and three quarters (0.75) of one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one common share of Apollo at an exercise price of US$1.00 until December 31, 2006. The second tranche is expected to be completed on or about January 10, 2005, (which is earlier than the originally announced closing date for the second tranche of January 25, 2005). Apollo has granted the underwriter an option to increase the total size of the Offering by an additional 1,875,000 Units for a total of up to 12,500,000 Units, such option to be exercisable by the underwriter up to 48 hours prior to the closing of the second tranche.

A shelf registration statement of Apollo has been declared effective by the U.S. Securities and Exchange Commission ("SEC"), and a prospectus supplement with respect to the Offering was filed with the SEC on December 17, 2004. A subsequent prospectus supplement with respect to the Offering was filed with the SEC on January 3, 2005.

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 press release shall not constitute an offer to sell or solicitation of an offer to buy in any jurisdiction where such solicitation or sale would be unlawful.

About Apollo Gold

Apollo Gold is a gold mining company with operating mines in Nevada and Montana, the Black Fox advanced stage development project in Ontario, Canada, and the Huizopa Project an early stage exploration project in the Sierra Madre Gold Belt in Chihuahua, Mexico.

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 agent's option, the aggregate gross proceeds and the anticipated closing dates are forward-looking statements that involve various risks and uncertainties. There can be no assurance that the option will be exercised, that the offering will raise the amounts set forth herein or that the offering will close on the dates anticipated. Important factors that could cause actual results to differ materially from these forward-looking statements include: the results of a due diligence investigation by potential purchasers, a material adverse change in the Company's condition, 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.