Apollo Gold Announces Bought Deal Private Placement Financing of CDN$7,000,000

Thursday, August 7th 2008

Apollo Gold Corporation announces that it has entered into an agreement for a private placement financing pursuant to which Apollo proposes to sell 14,000,000 flow-through shares for purposes of the Income Tax Act (Canada) (“Flow Through Shares”) on a bought deal basis at CDN$0.50 per Flow Through Share to raise gross proceeds of CDN$7,000,000. Apollo has granted the underwriters an over-allotment option entitling them to acquire up to an additional 3,000,000 Flow Through Shares for gross proceeds of up to CDN$1,500,000 until the closing of the offering.

Apollo intends to use the gross proceeds of the private placement for the pre-strip of the Black Fox open pit mine and to incur Canadian Exploration Expenses (as defined under the Income Tax (Canada)) at its Black Fox project.

The private placement is scheduled to close on or about August 21, 2008 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals including the approval of the Toronto Stock Exchange and the American Stock Exchange.

The Flow Through Shares will be offered to residents of Canada pursuant to Regulation S of the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Flow Through Shares have not been registered under the Securities Act, and may not be offered or sold in the United States without registration or pursuant to an applicable exemption from the registration requirements of the Securities Act. The Flow Through Shares would be subject to a four-month hold period in Canada.

Apollo is a gold mining and exploration company that operates the Montana Tunnels mine, which is a 50% joint venture with Elkhorn Tunnels, LLC, 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.