Apex Silver Reports Operations Update At san Cristobal

DENVER, CO - In 2008, Apex Silver Mines expects it's San Cristobal Mine in Bolivia to produce approximately 16 million ounces of payable silver at an average cash operating cost ranging from approximately negative $3.00 to $3.50 per ounce (the lead by-product credit, assuming a lead price of $0.80 per pound, results in a negative cash operating cost for silver), 235,000 tonnes of payable zinc at an average cash operating cost ranging from approximately $0.65 to $0.75 per pound, and 80,000 tonnes of payable lead (the net smelter return value of lead is credited as a by-product to silver production costs). The company expects metals production to increase during each of the first three quarters of 2008 as the mine ramps up to consistent full throughput rates by mid-year and as the company continues to optimize concentrator performance.
Apex Silver is continuing to ramp up to full production at San Cristobal and mining of ore from the pit continues at the planned rate. The concentrator has achieved throughput rates of approximately 40,000 tonnes per day on several days in the fourth quarter 2007 and in February 2008. Throughput in January and February was constrained primarily due to a shortage of process water resulting from well failures caused by high water salinity. Both average throughput rates and metal recovery rates have shown month to month improvement from the commencement of production in August 2007, with throughput currently averaging approximately 75% of designed capacity.
In January and February, the company focused on improving the reliability of process water by redrilling failed wells and repairing or replacing damaged pumps. The company believes that there will be adequate water commencing in March for production at designed rates until the planned delivery and installation in the third quarter 2008 of larger stainless steel casings and pumps that should provide a long-term solution. The company also is focused on metallurgical pilot plant work to optimize the ore blends and recovery rates. Workforce training in an operating plant environment continues and the company continues to adjust designed process control systems to accommodate the real-time operating environment. The company also continues to improve the delivery of operating parts and supplies and to resolve various start-up mechanical production issues. The company expects to resolve most of these issues in the second quarter 2008.
The company's address is 1700 Lincoln Street, Suite 3050, Denver, CO 80203, (303) 839-5060, fax: (303) 839-5907.