LOI To Acquire Jalisco Group Of Property Concessions

VANCOUVER, BC - Apollo Gold Corp. has entered into a letter of intent with First Majestic Silver Corp. Pursuant to the LOI, Apollo has confirmed its intention to enter into a 3 year earn-in option with First Majestic to acquire 100% of First Majestic’s ownership in its Jalisco Group of properties, in the state of Jalisco, Mexico. The LOI is non-binding, however it is the intention of Apollo and First Majestic to enter into a Definitive Agreement within 90 days.

First Majestic’s Jalisco Group of Properties covers 6 properties and 15 highly prospective claims, 13 of which First Majestic owns 100% and 2 in which it has a 45% interest, in the state of Jalisco, Mexico. The claims cover 5,240 hectares in a district that has a history of gold and silver mining, including the historic Etzatlan, Ampora, La Calbaza, Piedra and Bola mines. The Jalisco Properties are adjacent to a number of properties, such as El Barqueno, El Rayo and Coyote, owned by Agnico Eagle who, together with Compania Minera Artengo (CMA), dominate the district. In 2008, First Majestic mapped a number of known epithermal veins and ran sampling programs on most of their Etzatlan claims, one of the Jalisco Properties, and identified a number of drill-ready targets. Historic rock grab and/or channel sample results reported from several veins included results with ranges from: 0 to 11.18 g/t Au; 0 to 538 g/t Ag; 0.013 to 7.3% Pb; 0.009 to 6.19% Zn, and 0.003 to 2.5% Cu.

The historic samples are rock grab samples and are by their nature selective and are not necessarily indicative of the general geology or grade within the property and are not contained in a National Instrument 43-101 report and are provided for context only.