Apollo Gold Repays RMB Resource Loan of US$1.7 Million Early

DENVER--(BUSINESS WIRE)--August 27, 2008
Apollo Gold Corporation ("Apollo") (TSX: APG) (AMEX: AGT)
announces that it has repaid early the balance of the facilities
agreement owing to RMB Resource Inc. of US$1,654,000 mainly from
proceeds of unwinding its hedge position with a maturity date of
September 26, 2008 as more fully described below. 
On October 12, 2007, Apollo entered into a US$8.0 million Facility
Agreement (the "Facility Agreement") by and among Apollo and its
wholly owned subsidiaries, Montana Tunnels Mining, Inc. and Apollo
Gold, Inc., as borrowers and guarantors, and RMB Holdings Limited, an
Australian corporation, and RMB Resources Inc., a Delaware
corporation, as lenders. Also, on October 12, 2007, Apollo Gold
entered into certain put and call contracts for lead and zinc as a
requirement of the Facility Agreement. As of June 30, 2008, the
balance of the Facility Agreement was US$1,654,000 due September 30,
2008 (the "September 2008 Obligation") and the following put and call
contracts were scheduled to expire on September 26, 2008 (the
"September 2008 Contracts"): 


 Contract Type   Base Metal Volume                        Strike Price
----------------------------------------------------------------------
 Put             Lead       567 Tonnes (1,250,020 pounds)   US$1.40
 Call            Lead       567 Tonnes (1,250,020 pounds)   US$1.898
 Put             Zinc       891 Tonnes (1,964,316 pounds)   US$1.20
 Call            Zinc       891 Tonnes (1,964,316 pounds)   US$1.539

On July 1, 2008 Apollo Gold entered into an Amendment to the
Facility Agreement (the "Amendment") and borrowed an additional US$5.1
million (the "Extended Loan Facility") and entered into additional put
and call contracts for gold, silver, lead and zinc as a requirement of
the Amendment. 
On August 22, 2008, Apollo Gold unwound the September 2008
Contracts early as a debt management decision since the current value
of the contracts were near the September 2008 Obligation
(US$1,654,000) and realized a gain of US$1,556,000. The net proceeds
of US$1,556,000 plus additional cash of US$108,000 were used to repay
early the September 2008 Obligation (plus interest thereon of
US$10,000). As of August 22, 2008, Apollo Gold owes US$5.1 million on
the Extended Loan Facility. This transaction did not affect any other
terms of the Amendment. 
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, in Montana, 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. 
CONTACT:
Apollo Gold Corporation
Marlene Matsuoka, 720-886-9656, Ext. 217
Toll-Free: 877-465-3484
info@apollogold.com
www.apollogold.com 
-0- Aug/27/2008 17:52 GMT
 
 
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