Apollo Gold Announces US$8.5 Million Offering Mining

DENVER--(BUSINESS WIRE)--Dec. 21, 2004--Apollo Gold Corporation ("Apollo" or the "Company") (TSX:APG) (AMEX:AGT) is pleased to announce the offering (the "Offering") of up to 10,625,000 units for aggregate proceeds to Apollo of US$8.5 million. Each unit consists of one (1) common share and a three quarters (0.75) common share purchase warrant and each whole common share purchase warrant shall entitle the holder to purchase one common share of Apollo at an exercise price of $1.00 for a period of twenty-four months following the closing. The issue price of each unit is US$0.80. Apollo has also granted to the underwriter an option to purchase, at any time up to two days prior to second closing, up to an additional 1,875,000 units for additional aggregate proceeds to Apollo of US$1.5 million, giving an aggregate gross proceeds total of up to US$10.0 million. The Offering shall be conducted in two tranches, the first tranche is expected be completed on or about December 21, 2004 and the second tranche is expected to be completed on or about January 25, 2005.

A shelf registration statement with respect to the units to be offered has been declared effective by the U.S. Securities and Exchange Commission ("SEC"), and a prospectus supplement with respect to the proposed offering will be filed with the SEC. This press release is not an offer of securities for sale in the United States. The securities described herein may not be offered or sold in the United States absent registration or an exemption from registration, and any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the Company and that will contain detailed information about the Company and management as well as financial statements. T

his press release shall not constitute an offer to sell or solicitation of an offer to buy in any jurisdiction where such solicitation or sale would be unlawful.

About Apollo Gold

Apollo Gold is a gold mining company with operating mines in Nevada and Montana, the Black Fox advanced stage development project in Ontario, Canada, and the Huizopa Project an early stage exploration project in the Sierra Madre Gold Belt in Chihuahua, Mexico.

E-mail: info@apollogold.com

Web site: www.apollogold.com

FORWARD-LOOKING STATEMENTS

This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements regarding the over-allotment provision, the aggregate gross proceeds and the anticipated closing dates are forward-looking statements that involve various risks and uncertainties. There can be no assurance that the over-allotment provision will be exercised or that the offering will raise the amounts set forth herein or that the offering will close on the dates anticipated. Important factors that could cause actual results to differ materially from these forward-looking statements include: the results of a due diligence investigation by potential purchasers, a material adverse change in the Company's condition, and other factors disclosed under the heading "Risk Factors" and elsewhere in Apollo documents filed from time to time with the Toronto Stock Exchange, The American Stock Exchange, The United States Securities and Exchange Commission and other regulatory authorities.

CONTACT:

Apollo Gold

Dave Young, 720-886-9656 ext. 55

Investor Relations toll free: 877-465-3484