Apogee Intersects 3.0 Meters Grading 659.00 g/t Silver and 1.85 g/t Gold and 5.0 Meters Grading 278.60 g/t Silver at the Pulacayo Deposit

TORONTO, ONTARIO--(Marketwire - May 17, 2011) - Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) reports assay results from eight additional diamond drill holes from the ongoing drill campaign at the Pulacayo deposit located in southwest Bolivia (See Table 1 below). All of the reported holes were drilled from surface.

The highlights from these holes include:

• DDH PUD 178 intersected 2.6 meters grading 180.02 g/t silver, 0.08 % lead, 0.52% zinc.

• DDH PUD 181 intersected 5.0 meters grading 278.60 g/t silver, 1.26 % lead and 0.93% zinc.

• DDH PUD 182 intersected 3.0 meters grading 659.00g/t Ag, 0.02% lead, 0.18% Zn and 1.85 g/t Au and 3.0 meters grading 142.33 g/t silver, 0.04% lead, 1.07% Zn and 0.36 g/t Au.

• PUD 183 intersected 2.0 meters grading 294.00 g/t silver, 0.06% lead and 0.43% zinc in within a 5.0 meter interval grading 177.6 g/t silver, 0.04% lead and 0.30% zinc.

The holes intersected mineralization outside of the currently estimated mineral resource and were drilled to continue delineation of the deposit along strike east of the previously released National Instrument 43-101 ("NI 43-101") resource. Since 2010, Diamond drilling has successfully extended the deposit approximately 750 meters east of the current NI 43-101 resources. (See Press Releases dated January 15^th 2010, March 15^th 2010, April 19^th 2010, July 13^th 2010, August 9^th 2010, September 20^th 2010, January 18^th 2011, February 24^th 2011, April 5^th 2011 and the NI 43-101 technical report dated December 2008 and filed under the SEDAR profile of the Company at www.sedar.com). The Company has now completed a total of 49 drill holes in the area east of the previously released NI 43-101 compliant resource (See Figure 2 and 3 below).

Chris Collins, P. Geo., President of Apogee, states, "We are very excited by the latest drill results at Pulacayo which management believes indicates outstanding silver grades over excellent widths. We have encountered significant gold mineralization in DDH PUD182, one of the deepest intersections at the Pulacayo deposit since Apogee initiated drilling and the most significant occurrence of gold mineralization observed to date. Going forward we will systematically evaluate the extent of this newly identified gold-rich area of the deposit. Four drills are currently working on the deposit and fifth underground diamond drill rig has been contracted and will be mobilized to the property in early June."

To view, "Table 1 Summary of Significant Intercepts" please visit the following link: http://media3.marketwire.com/docs/ape_tb1_517.pdf

The Pulacayo Deposit is a thick east-west striking zone of conjugate veins, stockwork and disseminated sulphides that locally are up to 200 meters thick with a higher grade core that comprises the resource and may locally exceed 60 meters in thickness. The known strike length of the Tajo Vein System which hosts the Pulacayo deposit is close to 3 kilometers and it remains open at both ends along strike (Figure 2). Mineralization comprises sphalerite, galena and tetrahedrite in sulphide-rich veins ranging from a few centimeters to greater than one meter thick and heavily disseminated sphalerite, galena and tetrahedrite between the veins.

In addition, the Company announces that in connection the closing of its previously announced bought deal private placement financing, the Company has paid to the underwriters a cash commission in the amount of $1,501,920 and has issued an aggregate of 5,364,000 compensation warrants which entitle the holders thereof to acquire up to 5,364,000 common shares of the Company at an exercise price of $0.28 until December 3, 2012 (See Press Release dated May 3, 2011). The compensation warrants remain subject to a statutory hold period which expires on September 4, 2011.

Quality Control

The Company employs a quality assurance/quality control protocol on all aspects of the diamond drilling, sampling and analytical procedures. The Quality Control and all aspects of the exploration program are supervised by Apogee's Exploration Manager Mr. Hernan Uribe, who holds a Masters of Applied Science in Mineral Exploration from the Imperial College of Science And Technology, Royal School of Mines, London England. The scientific and technical information presented in the press release has been reviewed and approved by Chris Collins, P. Geo., President of Apogee and a qualified person, as defined by NI 43-101.

For detailed project information please refer to Apogee's web site at www.apogeesilver.com.

About Apogee Silver Ltd

Apogee Silver Ltd. is a mineral exploration and development stage company listed on the TSX Venture Exchange under the symbol APE. Apogee targets advanced silver-zinc-lead projects in South America that demonstrate potential to be developed to production. Currently its projects are located in the historic silver producing regions of southwest Bolivia and northern Chile.

Its most advanced project is the 100% owned Pulacayo-Paca project in Bolivia, This project includes the property that covered the second-largest silver mine in the history of Bolivia with over 600 million ounces of past production

Cautionary Note Regarding Forward-Looking Information. This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the future financial or operating performance of the Company, its subsidiaries and its projects, the development of and the anticipated timing with respect to the Pulacayo-Paca project, the current drill program, and statements regarding exploration prospects. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: financing not being available at desired prices; general business, economic, competitive, political and social uncertainties; the actual results of current exploration activities; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of mineral prices; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; and, delays in obtaining governmental approvals or required financing or in the completion of activities. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws

On Behalf of the Board,

G. Scott Paterson, Chairman

To view Figure 1, 2 and 3, please visit the following link: http://media3.marketwire.com/docs/ape_fgs_517.pdf