Apollo Gold Announces the Deferral of Its Scheduled Loan Repayment Due September 30, 2009

• Press Release
• Source: Apollo Gold Corporation
• On 8:30 am EDT, Tuesday September 29, 2009

DENVER--(BUSINESS WIRE)--Apollo Gold Corporation (“Apollo” or “the Company” or “we”) (TSX: APG - News) (NYSE Amex: AGT) is pleased to update the market on progress with negotiations held with Macquarie Bank Limited and RMB Australia Holdings Limited (together, the “Banks”).

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In August, we announced that, as a result of lower than expected gold production at the Black Fox mine, we had triggered a “review event” under the $70,000,000 project finance facility that we entered into in February 2009 (the “Project Facility”) with the Banks and that we were engaged in constructive discussions with the Banks in order to resolve the issues associated therewith. We are pleased to announce that the Banks have agreed, subject to the condition that we provide a new resource model and life of mine plan to the Banks prior to November 15, 2009, to defer the first scheduled repayment of $9,300,000 due on September 30, 2009 (the “Deferred Payment”) under the Project Facility and the requirement to fund the associated Debt Service Reserve Account also due on September 30, 2009, which, in accordance with the terms of the Project Facility, requires a reserve amount equal to, at all times after initial funding, the greater of $5,000,000 or the aggregate repayment amount due on the next repayment date (the “Deferred Funding Obligation”). This deferral will enable the Banks and Apollo to complete an ongoing technical review of the Black Fox project with the objective of rescheduling the quarterly repayment installments under the Project Facility. As a result of the deferral, the Deferred Payment and the Deferred Funding Obligation now must be satisfied on the earlier to occur of (i) the completion of the Bank’s technical review process of the Black Fox mine and (ii) December 31, 2009. The Company expects the technical review to be completed before December 31, 2009. In addition, as part of the deferral, the Banks agreed to extend the date by which the project completion test under the Project Facility must be satisfied to March 31, 2010.

Apollo Gold Corporation

Apollo is a gold mining and exploration company which operates the Black Fox mine in Ontario, Canada and the Huizopa project, an early stage exploration project in the Sierra Madres in Chihuahua, Mexico. Apollo also owns the Montana Tunnels mine, which is a 50% joint venture with Elkhorn Tunnels, LLC, in Montana, which was placed on care and maintenance on April 30, 2009.

FORWARD-LOOKING STATEMENTS

This press release includes “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “schedules,” “targets,” “predicts,” “intends,” “continue,” or the negative of such terms, or other comparable terminology. All statements regarding the ability of the Company to resolve the review event with the Banks in a satisfactory manner and the timing thereof, the ability of the Company to reschedule the quarterly repayment installments under the Project Facility and the satisfactory completion and timing of the Black Fox project technical review 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: an inability to resolve the Review Event with the Banks in a satisfactory manner, non-completion or delay of the technical review and the inability of the Company to reschedule the quarterly repayment installments under the Project Facility, the additional operational, geotechnical, processing problems at the Black Fox mine and mill, unexpected changes in business and economic conditions, political or economic instability, significant decreases in gold prices, difficulties or delays in permitting at Black Fox, changes in interest and currency rates, local and community impacts and issues, labor accidents, environmental risks and other factors disclosed under the heading “Risk Factors” in Apollo’s most recent annual report on Form 10-K filed with the United States Securities and Exchange Commission and elsewhere in Apollo’s documents filed from time to time with the Toronto Stock Exchange, The NYSE Amex exchange, The United States Securities and Exchange Commission and other regulatory authorities. All forward-looking statements included in this press release are based on information available to Apollo on the date hereof. Apollo assumes no obligation to update any forward-looking statements.

Apollo Gold Corporation
Marlene Matsuoka, 720-886-9656 Ext. 217
Toll-Free: 1-877-465-3484
Investor Relations
ir@apollogold.com
www.apollogold.com