APOLLO MINERALS LIMITED — Capital/Financing Update 2012

Aug 5, 2012

6 August 2012

ASX ANNOUNCEMENT

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Apollo reports major increase in Exploration Target at Commonwealth Hill

Highlights

ASX Code: AON

ABOUT APOLLO MINERALS

Apollo Minerals is an iron ore explorer and developer with two key projects in the Australian iron ore provinces of the Pilbara (Western Australia) and Gawler Craton (South Australia) and a third in Gabon, Africa. Apollo’s South Australian tenements are also highly prospective for base and precious metals.

Apollo’s projects are well situated close to infrastructure including railways and ports.

Capital Profile

Shares on issue 270.7m Options on issue 73.5m

• Commonwealth Hill Iron Project (CHIP) Exploration Target[1] expanded to 300 – 550 mt at 25 – 35% Fe

• Includes initial Exploration Target at Ibis Prospect estimate of 200 – 400 mt at 25 – 35% Fe

• Ibis shows potential for significant tonnages of > 40% Fe mineralisation

• Ibis shows potential for iron associated gold and copper

• Initial Ibis drilling programme being planned for Q4 2012

INTRODUCTION

Apollo Minerals Ltd (ASX: AON) (“Apollo” or “the Company”) is pleased to announce a major Exploration Target[1] of 200 - 400 mt at 25 – 35% Fe to 200m below surface at its Ibis Prospect at Commonwealth Hill. Mineralisation is expected to extend to well over 400m below surface.

Iron Ore Projects

Commonwealth Hill South Australia Mount Oscar Western Australia Kango North Gabon

Base and Precious Metals Project

Combined with the existing Exploration Target of 100 – 150 mt at 25 – 35% Fe at the Sequoia Deposit, this new Exploration Target[1] at Ibis increases the property-wide Exploration Target[1] to 300 – 550 mt at 25 – 35% Fe.

Titan South Australia

Apollo Minerals Limited ABN 96 125 222 924 50 Margaret Street Sydney NSW 2000 T: +61 2 9078 7670 F: +61 2 9078 7661 E: info@apollominerals.com.au

Contact

Dominic Tisdell Apollo Minerals Ltd T: +61 2 9078 7660

Tony Dawe Investor Relations T: +61 8 9388 0944

www.apollominerals.com.au

The Ibis Prospect is over 6km long vs 1.5km at Sequoia (Figure 1). Grades of over 46% Fe have been returned from recent rock chip sampling.

Chief Operating Officer Dominic Tisdell said, “Our work at Ibis is part of Apollo’s focus to prove up a substantial iron ore project at Commonwealth Hill with real development potential. To date we have earned the support of one of India’s largest steel producers and we expect continued strong interest as the project advances and grows in scale and value.”

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ASX ANNOUNCEMENT

Review of Apollo’s recent ground gravity and magnetic geophysical surveys, surface rock samples and limited historic drilling along the margins of the Ibis Prospect, 20 km west of the Sequoia Deposit, indicate that the Ibis Prospect may host between 200 – 400 mt at 25 – 35% Fe to 200m below surface. Mineralisation is expected to extend to well over 400m below surface.

Assays from recent rock chips taken from iron mineralisation outcropping near Ibis’s northern fold hinge have returned grades of 45 – 47% Fe.

Recently completed geophysics suggests that Ibis contains the most responsive rocks, being the densest and most magnetic assessed to date at Commonwealth Hill, and is a high priority target for high-grade iron mineralisation.

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Figure 1: Ibis outcrop (47% Fe)

Of particular interest is the northern fold hinge where gravity and magnetic responses are 40% stronger than at Sequoia where Apollo recently announced a maiden JORC-code compliant mineral resource that included a higher grade fraction of 5.4 mt at 38.9% Fe.

Review of the ten shallow (<50m) RAB holes drilled along the margins of the Ibis Prospect in two lines during 2003 has identified that this drilling returned anomalous gold (0.2 g/t over 4m) and copper (136 ppm over 24m) intersections. The southern line also noted medium to coarse grained granites in all holes and associated contact metamorphism.

Regionally, high grade (>60% Fe) massive haematite iron ore deposits, including Peculiar Knob, have been located at contact zones between primary Banded Iron Formations (BIF) and granites. Apollo believes that strong potential exists to discover significant quantities of higher grade iron mineralisation (40% – 60% Fe) at Ibis, particularly in and around the northern fold hinge and along contact zones with granite intrusives.

Ibis’s near-surface strike length is estimated at 5km, expanding to 6km at depth.

Collectively, between the Sequoia and Ibis target areas alone, Apollo now has an Exploration Target[1] of 300 – 550 mt at 25 – 35% Fe at Commonwealth Hill. The Company is currently reviewing a global estimate for the

1 The estimates of exploration target sizes mentioned in this release should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

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whole property which will also include Sequoia East and Wirrida Prospects. An announcement on this is expected during Q3, 2012.

COMMONWEALTH HILL 2012 EXPLORATION UPDATE

Exploration on the Commonwealth Hill Iron Project (“CHIP”) is primarily focussed on the search for iron ore associated with large, near-surface deposits with Direct Shipping Ore (“DSO”) potential over the 100% owned Commonwealth Hill tenements, covering 750km[2] in the central Gawler Craton, South Australia.

The same ground is prospective for a wide range of base and precious metals including gold, copper and platinum group metals. A distinction is made between the two projects with CHIP being focused on the iron ore potential and the Titan Project (Titan) focusing on the base and precious metals.

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Figure 1: Commonwealth Hill Iron Project area covering 750 km[2] showing the location of four primary Exploration Prospects currently being explored, Exploration Targets & results from ground gravity surveys.

On 25 June 2012, Apollo announced its’ maiden JORC-compliant Indicated and Inferred Mineral Resource estimate for the Sequoia Deposit (Figure 1), which is the smallest of four primary targets that make up CHIP. The total mineral resource at Sequoia was estimated at 72 mt @ 25.9% Fe, which includes a higher-grade core of 5.4 mt @ 38.9% Fe.

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Apollo’s prospective exploration target areas are situated close to the existing north-south, Adelaide to Darwin railway line, which the Company is planning to utilise as it progresses CHIP towards production.

During 2012, the Company has completed geophysical surveys across its CHIP and Titan Projects and include

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ground gravity, ground magnetics and electro-magnetic (EM) orientation surveys. Data from the gravity and magnetic surveys have been received and are being processed and incorporated into Apollo’s data-set for the Commonwealth Hill region.

On the Titan Project there is scope to identify Iron Oxide Copper Gold Uranium (“IOCGU”) style mineralisation similar to deposits such as Olympic Dam, Prominent Hill and Carapateena, or Archaean hosted gold mineralisation similar to the near-by Challenger gold deposit.

The EM orientation survey tested this technology over the Wirrida and St Andrews prospects to determine its effectiveness over complex igneous geology. Preliminary data is encouraging however final reports are pending.

Detailed ground magnetic and gravity surveys over the Ibis and St Andrews prospects and Sequoia mineral resource area are now complete with the Sequoia East and Wirrida West (western portion of the Wirrida intrusive – shown in Figure 1) prospects, 8 km east of the Sequoia Deposit also being surveyed as part of the ground gravity programme.

At St Andrews, previous explorer Minotaur Gold NL intersected DSO grade iron mineralisation (>50% Fe) in three drill holes SA004C, SA006C and SA003C. Apollo is currently assessing the St Andrews prospect for high grade iron mineralisation potential.

Ground Gravity and Magnetic Surveys

Apollo has so far completed ground gravity surveys totalling approximately 320 line km and ground magnetic surveys totalling 330 line km. These surveys are designed to test for density contrasts in the sub-surface geology that may reflect iron or sulphide rich bodies.

Gravity geophysics has been successful in delineating rock units of anomalously dense material at Sequoia, Sequoia East, Wirrida West, Ibis, and St Andrews. Magnetic survey results have also defined zones of magnetic and non-magnetic units that correlate closely with the gravity data and have successfully indicated the presence of haematite mineralisation, which can be of DSO grade.

Sequoia Deposit

The Sequoia Deposit is located in the central part of Apollo’s tenement property and situated 20km west from the Adelaide to Darwin railway line. Iron mineralisation crops out at surface, extends for 1.2km along strike, and has an average true width thickness of approximately 150 meters. As announced on 25 June 2012, the total Indicated and Inferred mineral resource estimated at Sequoia is 72 mt @ 25.9% Fe (@ 15% Fe cut-off) to

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a depth of 175m below surface and includes a higher grade fraction of 5.4 mt at 38.9% Fe. Mineralisation remains open along strike and at depth.

The gravity and magnetic survey covered 26 line kilometres each and review of the data-set has demonstrated a strong correlation with geology which depicts the mineralised blocks modelled in the recent mineral resource estimate. The gravity and magnetic data has defined areas where the Sequoia deposit could be extended and existing drilling data is sparse.

The size of the Sequoia deposit has significant potential to increase with further drilling of these areas identified as dense gravity and/or magnetic anomalies. It is estimated that mineralisation at Sequoia extends to 1.5km along strike by ~250 m thick, for an estimated Exploration Target of 100 – 150 mt at 25 – 35 % Fe as shown in Figure 2.

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----- Start of picture text -----

72Mt JORC Resource model
Magnetic
extension
Gravity extension
150m
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Figure 2: Sequoia Mineral Resource block model showing potential extensions

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Ibis Prospect

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The Ibis Prospect is located approximately 20 km west of Ibis on the CHIP tenements and is defined by notable magnetic and gravity anomalies, which have strike lengths of approximately 6km and a width of approximately 1.5 kilometres.

Apollo’s recent gravity and magnetic surveys at Ibis each covered over 250 line km. The geophysical anomalies at Ibis have the strongest signature of any anomaly so far identified on the CHIP tenements.

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Preliminary investigations suggest the source of the anomalies is shallow, near surface iron mineralisation hosted within quartz-magnetite gneiss. Surface mapping at Ibis has identified haematite bearing rocks within the Prospect grading 45 – 47% Fe (Table 1, Figure 3).

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**EASTING **	NORTHING	Fe	SiO2	Al2O3	CaO	MgO	MnO	K2O	Na2O	P	S	TiO2	Cu	LOI
396909	6694864	46.57	29.77	0.38	0.05	0.02	0.07	<0.01	0.01	0.015	0.029	0.01	0.001	2.91
396791	6694779	44.68	29.35	1.5	0.06	<0.01	0.08	<0.01	<0.01	0.017	0.075	0.01	0.002	4.63

Table 1, Figure 3: Ibis Prospect showing dense rock units, historic drilling and recent rock chip assays

Analysis of the geophysics survey results associated with these rock chip samples has highlighted potential for haematite alteration and enrichment of the primary magnetic BIF as the location relates to a depleted magnetic signal and an associated gravity high (Figure 3). These targets are located within a structure that would allow movement of water and the oxidation of magnetite to enriched haematite. Both targets are relatively close to surface and are expected to be easy to test by drilling.

Gravity lows to the south of these targets probably indicate an increased weathering profile and secondary enrichment which has potential to host enriched iron if the primary silica has been dissolved. These gravity lows also present a target for gold and copper mineralisation due to possible preferential weathering of sulphides.

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Review of historic drilling in 2003 around the margin of the Ibis Prospect identified ten shallow (<50m) RAB holes drilled along two lines on the margins of the Ibis Prospect. Anomalous gold and copper was detected in three of the holes with assays of:

• RED43: 24m at 136 ppm Cu between 8m and 32m

• RED45: 8m at 145 ppm Cu between 40m and 48m

• RED45: 20m at 136 ppm Cu between 16m and 36m, and

• 8m at 0.1 g/t between 36m and 44m including 4m at 0.2 g/t Au.

RED44, the western-most hole on the northern line intersected the gravity and magnetic highs recently identified from the Apollo geophysical surveys and returned iron grades of 34.7% Fe in the End-Of-Hole (EOH) sample, the only interval assayed for iron. All other holes missed the inferred gravity and magnetic highs but nevertheless, typically returned iron grades in the EOH samples of up to 23.4% Fe.

Medium-to-coarse grained granites where noted in all five holes in the southern line, along with evidence of contact metamorphism.

Apollo is strongly encouraged by review of the data and looks forward to the opportunity to thoroughly drill test a highly prospective target.

Sequoia East Prospect

The Sequoia East Prospect is located 7 km east of Sequoia on the CHIP tenements and is defined by distinct magnetic and gravity anomalies.

As announced to the ASX on 17 April 2012, a drilling program completed at Sequoia East in early 2012 was successful in discovering iron mineralisation and intersecting magnetite in the two drill holes (SEE-006 and SEE011) penetrating more than 20m below surface. Results included:

• SEE-006 : 12m at 25.5% Fe between 6m and 18m

• 4m at 27.7% Fe between 28m and 32m

• SEE-011: 22m at 24.6% Fe between 76m and 98m (EOH).

Regrettably, both drill holes were abandoned before achieving target depths due to the influx of ground water on the RC drill hammer and several re-drill attempts also failing. Drill hole SEE-011 was terminated at 98m within iron mineralisation, and drill hole SEE-006 did not reach the interpreted depth of the anomaly, although iron mineralisation was unexpectedly intersected higher in the oxide zone. True width intersections are not quoted above because the geometry of the geology is not known.

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From 6m, SEE-006 was anomalous in copper for its entire length with assays consistently reporting between 100 and 280 ppm Cu over the 82m interval to its EOH depth of 88m (220 ppm Cu average).

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Apollo is greatly encouraged by this new discovery

at Sequoia East demonstrating that the exploration methodology being applied can be successful in defining worthy drill targets.

Apollo will be investigating alternative drilling methods for Sequoia East with the intention of conducting another drilling campaign at this target in the future.

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Figure 4: Sequoia East showing drill hole locations

St Andrews Prospect

The St Andrews Prospect area is situated approximately 4 km south of Sequoia and has potential to host significant quantities of DSO-grade iron mineralisation. The prospect has been previously explored by Minotaur Gold NL and several lines of shallow RAB and RC holes were drilled.

Historic drilling was reported to have intersected DSO grade (>50%) iron mineralisation in drill hole SA004C (28m @ 53.4% Fe between 12m and 40 meters), as well as other significantly mineralised holes adjacent to it.

Apollo has recently obtained access to the stored drill samples from these holes and is re-sampling a selection of intervals to confirm the results. Assay results from the re-sampling are pending and will be reported by the Company upon receipt.

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Apollo’s recent ground magnetic survey over the St Andrews Prospect confirmed that the iron mineralisation is associated with a very weakly magnetic intrusive of approximately 150m in diameter. Investigations are

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ongoing into the exact style of mineralisation being encountered at S Andrews.

TITAN PROJECT

Wirrida Prospect

The Wirrida Prospect is located on the eastern side of the Commonwealth Hill tenement area and represents the Wirrida Intrusive Complex. This intrusive complex is a suite of zoned Gabbro-Norite rocks of volcanic origin which have had limited historic exploration.

The Wirrida Intrusive Complex also has potential to host associated magnetite and haematite, and IOCGU styles of mineralisation. Review of historic data has identified numerous magnetic anomalies which have the potential to host significant volumes of magnetite or other minerals.

Previous exploration identified sulphide minerals including pyrite, chalcopyrite, pyrrhotite and platinum sulphides across the 15km x 5 km complex.

In early 2012, Apollo completed a detailed ground gravity survey over the western extents of the complex (Wirrida West – see Figure 1). Several dense magnetic and non-magnetic targets were identified, some associated with known structures which display significant brecciation and sericite and chlorite alteration which may be related to base and precious metals mineralisation.

The Company is actively reviewing the Wirrida Prospect area and has recently conducted a Moving Loop Electro-Magnetic (EM) survey as an orientation survey to determine the effectiveness of this technology in the region. Several test lines have been completed and results of the survey are pending.

Notes:

1 The estimates of exploration target sizes mentioned in this release should not be misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

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FOR FURTHER INFORMATION CONTACT:

Richard Shemesian Executive Director

Dominic Tisdell Chief Operating Officer Apollo Minerals Limited

Media and Investor Enquiries: Tony Dawe Investor Relations

info@apollominerals.com.au

Email: tony.dawe@ppr.com.au

Tel: +61 2 9078 7660

Tel: +61 8 9388 0944

COMPETENT PERSON DECLARATION

The information in this Report that relates to Mineral Resources and Exploration Results is based on information compiled by Mr Derek Pang who is a member of the Australasian Institute of Mining and Metallurgy. Derek has over 15 years’ experience in mineral exploration and is a full time employee of Apollo Minerals Ltd. Derek has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Derek consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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ABOUT APOLLO’S PROJECTS

Apollo Minerals Ltd (ASX Code: AON) is an iron ore and minerals explorer and developer with projects in South Australia, Western Australia and Gabon, western Central Africa. The Company’s key focus is to develop an iron ore project at each of Apollo’s project sites, with particular focus on the Commonwealth Hill region, SA.

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The Commonwealth Hill site lies on the northwest margin of the Gawler Range Volcanics Domain, where the older basement rocks are interpreted as Archaean gneisses of the Mulgathing Complex, which are intruded by late syntectonic granitoids of Palaeoproterozoic age. In the southeast of the Project, Mesoproterozoic Gawler Range Volcanics overlie the older basement and coeval Hiltaba Suite granitoids intrude both the volcanics and the older basement. Major northwest and northeast trending fault structures are evident from aeromagnetic data.

Apollo is currently evaluating the potential to develop a medium sized

iron-ore mine on the property. Drilling has identified both coarse grained magnetite and Direct Shipping Ore (DSO) style mineralisation and includes an Indicated and Inferred mineral resource estimated at 72 mt at 25.9% Fe (at 15% Fe cut-off). Previous work has highlighted the possibilities of producing a premium quality iron concentrate and sinter fines product.

The Mt Oscar Iron Project is located in north-western part of the Pilbara Craton in north-west Western Australia, and is approximately 30 km from the coast. The iron rich horizons are strike-continuous for up to 5.5km and are locally up to 160m thick with an average interpreted thickness in excess of 60m. Recent metallurgical work has demonstrated that the production of marketable products is possible i.e. >60% Fe, <8% (Al2O3 + SiO2).

Apollo’s Kango North licence area in Gabon largely comprises rocks of the northern portion of the Archaean craton in the region, known as the North Gabon Massif. These rocks are known to host a number of iron-ore deposits and occurrences within Gabon and neighbouring countries including Belinga, M’Bilan, Mbalam, Avima, Kango, Zanaga, Mayoko and Mayoko-Moussondji projects.

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