Black Fox Mine (CANADA):

Apollo's 100% owned Black Fox Mine was acquired in late 2002 from the Glimmer Mine joint venture which was operated and mined by Exall Resources Limited through 2001. The Mine is located 75 kilometers (40 miles) East of Timmins in Ontario, Canada and is on the Destor-Porcupine Fault Zone (DPFZ) in the Timmins Mining District. In April 2008, Apollo Gold filed a Canadian National Instrument (NI 43-101 Technical Report) prepared to a bankable standard (“bankable feasibility study”) and announced a total probable reserves of 1,330,000 ounces of gold at Black Fox.

The project development commenced in October 2008 starting with the commencement of the removal of the glacial till material which overlay the open pit and will be completed in May 2009. Additionally in October 2008, the expansion of the Black Fox mill commenced to increase its throughput rate from approximately 1,100 to 2,000 tonnes per day. Ore mining at Black Fox commenced in March 2009 and the mill expansion was commissioned in April 2009. The first gold pour at Black Fox occured in May 2009.

Please click here for N1 43-101 Technical Report PDF (9MB) or refer to the following sections:

• 1-2: Introduction, Property Description and Location
• 3: Accessibility, Climate, Local Resources, Infrastructure, and Physiography
• 4: History
• 5: Geological Setting
• 6-8: Deposit Type, Mineralization, Exploration
• 9: Drilling
• 10-11: Sampling Method, Approach, Preparation, Analyses, Security and Data Verification
• 13: Adjacent Properties
• 14: Mineral Processing and Metallurgical Testing
• 15: Mineral Resources and Mineral Reserve Estimates
• 16: Other Relevant Data and Information
• 17: Additional Requirements for Development Properties and Production
• 18: Interpretation and Conclusions
• 19-21: Recommendations, References, and Glossary
• Appendix

History:

The Black Fox property was formerly known as the Glimmer mine. In April 1996, Exall Resources Ltd. (“Exall”) purchased 60% of the property from Hemlo Gold Inc., and Glimmer Resource Inc. (“Glimmer”) held the remaining 40%.

In September 2002, we purchased all of the real estate and related assets of the mine, which ceased operations in May 2001, from Exall and Glimmer and renamed it “Black Fox”. We paid Exall and Glimmer Cdn$3 million in cash and 2,080,000 common shares and an additional Cdn$3 million in January 2006. From 1997 until 2001, the mine produced approximately 210,000 ounces of gold.

In July 2008, we acquired from St Andrew Goldfields Ltd. (“St Andrew”), its Stock Mill infrastructure, property rights, laboratory and tailings facilities, located near Timmins, Ontario. The acquisition was made pursuant to an asset purchase agreement for a purchase price of Cdn$20 million and the refund to St Andrew of its bonding commitment at the mill complex in the amount of approximately Cdn$1.2 million.

Location / Maps:

The Black Fox project consists of two properties: a mine and a mill. The Black Fox mine is located approximately seven miles east of Matheson, Ontario, Canada. The stock mill complex purchased from St Andrew, which we renamed the Black Fox mill complex, is located approximately 12 miles west of Matheson, which means that it is approximately 19 miles west of the Black Fox mine site. Both properties are easily accessible by provincial highway and power is supplied by Hydro One.

The Black Fox mine consists of 3,195 acres of which: 185 acres are leasehold patents, 1,559 acres are owned by Apollo, 319 acres are leased by us, 820 acres where we have surface rights only and 311 acres where we have mineral rights but no surface rights. The 3,195 acres includes property known as Grey Fox, which is approximately 2 miles southeast of the actual Black Fox mine.

Mill Complex:

In the third quarter 2008, we awarded GBM Engineering Ltd., of the UK an EPCM contract (Engineering, Procurement, Construction and Management) to increase the mill throughput to 2,000 tonnes per day at a cost of approximately $25.0 million. The mill was commissioned in April 2009 and currently has a throughput rate of 1,500 tonnes per day. The upgrade of our mill means that we will not toll treat ores as highlighted in the NI 43-101. Recoveries of gold are projected to be 95%. The mill produces a gold dore which is refined by the Johnson Matthey refinery in Brampton, Ontario.

Mining Operations:

In October, 2008, we awarded a contract for the removal of the glacial till material which overlays the open pit and work commenced on October 23, 2008. This removal is scheduled to be completed in May 2009. Mining of the open pit ore and waste, which commenced in March 2009, is undertaken by Company employees. All long lead time mining equipment, and all items required to commence mining were on site February 2009. Ore mining at Black Fox commenced in March 2009 and the mill expansion was commissioned in April 2009. The first gold pour at Black Fox occured in May 2009.

We expect that, by the second quarter of 2009, the open pit will produce 1,500 tonnes of ore per day, which will be sufficient to feed the mill. Based on this assessment, we have decided to defer underground mining to periods after 2009. Our decisions regarding the development of the underground mine and the timing thereof will be partially influenced by progress with the phase II of the open pit permitting. Therefore, we do not expect to be in a position to make a determination regarding the development and timing of underground mining until 2010.



Permits:

We have received all necessary permits and approvals required to commence mining activities of phase I of the open pit. In particular, we have received Certified Closure Plan Approval, an Amended Certificate of Approval for Industrial Sewage Works, and a Permit to Take Water (Surface and Ground Water.) The open pit reserves are divided into phase I and phase II and we expect to apply for the permits necessary to conduct phase II once mining on phase I has commenced.

Mineral Reserves:

1,300,000 Ounces of Gold in Reserve at Black Fox On April 14, 2008, we filed a Canadian National Instrument, NI 43-101 Technical Report, which was prepared to a bankable standard. The bankable feasibility study is a comprehensive analysis of a project’s economics (+/- 15% precision) used by the banking industry for financing purposes. The mineral reserves shown in the table below were calculated based on a gold price of $650 per ounce. (1) Underground reserves assume 95% mining recovery 17% planned dilution and 5% unplanned dilution both at 0 grams per tonne grade. The reserve estimates were based on information from 1,893 drill holes totaling 338,842 meters. Assays on 24 drill holes with very high gold values were capped at 250 grams (8 oz) per tonne which represents 0.25% of the assays.

Grey Fox / Land Expansion: Main Grey Fox Page

(Apollo Gold - Gold Production 4th Quarter) Drilling Update* (01 / 20 / 2009) - Apollo Gold - Identifies Continuity of Gold Mineralization from Additional Drill Assay Results from its Grey Fox Project