APOLLO MINERALS LIMITED — Capital/Financing Update 2012

Apr 16, 2012

17 April 2012

ASX ANNOUNCEMENT

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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). Apollo’s South Australian tenements are also highly prospective for base and precious metals.

NEW IRON DISCOVERY - COMMONWEALTH HILL

ASSAYS CONFIRM HIGHER GRADE MINERALISATION AT SEQUOIA

HIGHLIGHTS

• New iron mineralisation discovery at Sequoia East

• Assays confirm significant proportion of higher grade intersections at Sequoia

• Results include:

• 66m @ 38% Fe from 18m

• 24m @ 41.0% Fe from 4m

• 6m @ 42.4% Fe from 152m, and

• 8m @ 40.2% Fe from 28m

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

Capital Profile
Shares on issue	180.7m
Options on issue	60.5m
Market Cap	$9m

Iron Ore Projects Mount Oscar Western Australia Commonwealth Hill South Australia

Base and Precious Metals Project

• Mineralisation remains open at depth with geophysics

• indicating that higher grade mineralisation continues to depths beyond 400m.

Apollo Minerals (ASX: AON) (“Apollo” or “the Company”) has received very encouraging assay results from Amdel Adelaide’s mineral laboratory. These results significantly exceed the preliminary field estimates recorded by field portable XRF during the recent reverse circulation (“RC”) drilling campaign at the Commonwealth Hill Iron Project (“CHIP”) in South Australia.

Of particular note is the discovery of iron mineralisation at the Sequoia East anomaly, 7 km east of the Sequoia prospect where one hole intersected over 22m at 24.6% 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

Dominic Tisdell, Apollo’s Chief Operating Officer said, “These lab results are very exciting. For the first time, significant quantities of iron ore have been discovered below shallow cover away from the known Sequoia prospect. We now have confidence that, with time, we will be able to prove up large volumes of iron ore at CHIP. At Sequoia, the lab has confirmed that we do in fact have significant quantities of higher grade iron mineralisation. Given the confirmation of the coarse grained and relatively higher grade mineralisation, the existing open access rail and ports that connect to our project, and the potential to discover additional deposits on the property, we are in very good shape to continue fast- tracking our project towards production.”

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17 April 2012

ASX ANNOUNCEMENT

SEQUOIA EAST DISCOVERY

Recent geophysical surveys identified a series of north-south trending magnetic and gravity high anomalies 7 km to the east of the Sequoia prospect and very nearby to the south-western edge of the Wirrida Complex – a large scale intrusive likely to host significant quantities of iron ore and potentially base and precious metals.

Modelling identified that this group of anomalies (Sequoia East) represents a zone of potential iron mineralisation with a cumulative strike of approximately 4 km and an inferred cumulative thickness averaging 125m, with the magnetic fraction beginning from as close as 50m below surface and continuing for at least 400m down dip.

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Analysis also identified a strong gravity low that extends along the western contact of the Wirrida Complex into the Sequoia East anomaly that could represent a low density stratigraphic unit or palaeochannel type structure hosting channel iron mineralisation, or alternatively, a faulted zone exhibiting low density due to increased depth of weathering that could host base and precious metals mineralisation and significant quantities of process water.

Limited and shallow historic drilling by previous explorers did not intersect the potential palaeochannel or any significant mineralisation but did note widespread sulphides and the potential for base and precious metals.

As part of Apollo’s recent exploration drilling programme at Commonwealth Hill, the Company drilled two RC holes of more than 80m depth into the central portion of the Sequoia East anomaly to test for iron mineralisation. Neither hole achieved its target depth due to flooding of the RC hammer by ground water but both intersected significant iron mineralisation with grades of up to 32% Fe. SEE011 had to be terminated in iron mineralisation while SEE06 did not reach the beginning of the interpreted iron mineralisation but did intersect significant, unexpected iron mineralisation higher in the sequence. Significant results can be found in Appendix 1.

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Apollo is confident that with further drilling, a very significant resource can be defined at the Sequoia East prospect. An exploration target for this prospect will be announced shortly.

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17 April 2012

ASX ANNOUNCEMENT

SEQUOIA

Lab assays of recent RC drill hole samples have returned 2m composites with grades of up to 46% Fe (see Appendix 2). This drilling supplements previous government sponsored exploration in which RC drilling returned 2m composites of up to 48% Fe.

Importantly, approximately 20% of the mineralised intervals (above a 25% Fe cut-off) grade 40% Fe or higher.

Apollo anticipates that the remaining two holes from the Sequoia drilling programme will be confirmed by lab assay before the end of April. The Company will be working on defining a resource shortly thereafter.

It is expected that the substantial proportion of higher grade mineralisation identified at Sequoia will enable the Company to evaluate the potential of commissioning a low capital cost dry magnetic separation plant designed to produce saleable iron ore products at relatively low cash costs. The economics of this plan, along with other options, will be evaluated in the Scoping Study due for completion during the second half of 2012.

ENDS

FOR FURTHER INFORMATION CONTACT:

Dominic Tisdell Media and Investor Enquiries: Chief Operating Officer Tony Dawe Apollo Minerals Limited Investor Relations info@apollominerals.com.au Tel: +61 8 9388 0944 Tel: +61 2 9078 7660 Email: tony.dawe@ppr.com.au

Competent Person Declaration

The information in this Report that relates to Exploration Results is based on information compiled by Andy Border who is a member of the Australian Institute of Mining and Metallurgy. Andy Border 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’. Andy Border 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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17 April 2012

ASX ANNOUNCEMENT

APPENDIX 1: SEQUOIA EAST RC DRILLING RESULTS

Hole ID	Easting	Nothing	RL	Azimuth	Dip	Depth	From	To	Fe	SiO2	Al2O3	P	S	LOI
SEE06	439,750	6,693,450	162	90	-60	88	6	8	22.13	54.94	1.98	0.034	0.219	6
SEE06	439,750	6,693,450	162	90	-60	88	8	10	32.21	39.37	5.71	0.046	0.202	5.99
SEE06	439,750	6,693,450	162	90	-60	88	10	12	18.64	48.24	15	0.045	0.159	7.62
SEE06	439,750	6,693,450	162	90	-60	88	12	14	21.65	43.13	15.27	0.05	0.061	9.51
SEE06	439,750	6,693,450	162	90	-60	88	14	16	28.18	38.12	10.85	0.046	0.047	9.74
SEE06	439,750	6,693,450	162	90	-60	88	16	18	30.18	37.12	8.68	0.066	0.081	9.66
SEE06	439,750	6,693,450	162	90	-60	88	28	30	24.86	51.26	5.25	0.075	0.049	6.11
SEE06	439,750	6,693,450	162	90	-60	88	30	32	30.66	40.15	5.38	0.123	0.059	6.88
SEE011	439,980	6,693,600	162	90	-90	98	76	78	27.25	50.75	3.16	0.112	0.166	0.15
SEE011	439,980	6,693,600	162	90	-90	98	78	80	29.39	50.76	1.52	0.106	0.253	-0.5
SEE011	439,980	6,693,600	162	90	-90	98	80	82	28.91	49.19	2.93	0.065	0.173	-0.47
SEE011	439,980	6,693,600	162	90	-90	98	82	84	30.23	46.18	3.49	0.065	0.14	-0.65
SEE011	439,980	6,693,600	162	90	-90	98	84	86	25.22	53.96	2.58	0.041	0.285	-0.44
SEE011	439,980	6,693,600	162	90	-90	98	86	88	18.8	57.77	5.03	0.08	0.179	0.8
SEE011	439,980	6,693,600	162	90	-90	98	88	90	22.27	57.41	2.89	0.062	0.279	0.15
SEE011	439,980	6,693,600	162	90	-90	98	90	92	20.04	56.26	4.62	0.046	1.14	0.92
SEE011	439,980	6,693,600	162	90	-90	98	92	94	24.14	50.81	3.35	0.05	0.348	-0.46
SEE011	439,980	6,693,600	162	90	-90	98	94	96	24.67	50.45	5.14	0.061	0.276	-0.56
SEE011	439,980	6,693,600	162	90	-90	98	96	98	19.48	66.66	2.03	0.039	0.184	-0.46

RC drill samples collected at 1m intervals, assayed via 2m composites.

Intersections quoted at >20% Fe and >2m with a maximum of 2m dilution < 20% Fe.

All coordinates in MGA94 Zone 53 and collected using hand-held GPS.

XRF results by AMDEL Adelaide.

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17 April 2012

ASX ANNOUNCEMENT

APPENDIX 2: SEQUOIA RC DRILLING RESULTS

Hole ID	Easting	Nothing	RL	Azimuth	Dip	Depth	From	Interval	Fe	SiO2	Al2O3	P	S	LOI
SE010	430,817	6,693,421	176	74.1	-62.7	191	5	24	40.98	24.44	5.59	0.055	0.044	9.20
SE010	430,817	6,693,421	176	74.1	-62.7	191	157	4	35.66	40.76	3.57	0.081	0.090	-0.77
SE011	430,919	6,693,419	178	75.2	-59.0	129	2	4	37.64	25.88	9.52	0.018	0.080	8.00
SE011	430,919	6,693,419	178	75.2	-59.0	129	10	8	32.51	35.41	5.70	0.097	0.041	8.51
SE011	430,919	6,693,419	178	75.2	-59.0	129	62	6	36.89	40.82	1.71	0.059	0.066	-0.77
SE011	430,919	6,693,419	178	75.2	-59.0	129	70	4	34.98	43.89	1.83	0.099	0.031	-1.06
SE012S	430,836	6,693,545	178	75.3	-60.3	251	2	8	37.36	32.03	6.84	0.029	0.032	5.74
SE012S	430,836	6,693,545	178	75.3	-60.3	251	12	32	38.19	34.96	3.64	0.057	0.034	4.18
SE012S	430,836	6,693,545	178	75.3	-60.3	251	48	12	33.78	41.07	3.10	0.064	0.070	0.42
SE012S	430,836	6,693,545	178	75.3	-60.3	251	66	8	39.87	39.70	0.71	0.077	0.045	-1.22
SE012S	430,836	6,693,545	178	75.3	-60.3	251	76	10	38.36	39.48	1.33	0.074	0.070	-0.65
SE012S	430,836	6,693,545	178	75.3	-60.3	251	92	20	39.24	39.07	1.29	0.061	0.035	-1.33
SE012S	430,836	6,693,545	178	75.3	-60.3	251	150	10	35.39	43.55	1.58	0.089	0.039	-1.34
SE012S	430,836	6,693,545	178	75.3	-60.3	251	164	6	34.72	44.67	1.68	0.072	0.041	-1.20
SE012S	430,836	6,693,545	178	75.3	-60.3	251	228	4	31.78	44.84	4.27	0.100	0.073	-1.08
SE012S	430,836	6,693,545	178	75.3	-60.3	251	234	6	31.95	43.71	3.35	0.061	0.267	-0.61
SE013	430,934	6,693,545	179	83.8	-60.0	136	18	66	38.04	38.70	1.89	0.057	0.073	0.43
SE013	430,934	6,693,545	179	83.8	-60.0	136	86	8	33.79	43.08	2.08	0.074	0.339	-0.53
SE013	430,934	6,693,545	179	83.8	-60.0	136	110	4	33.45	42.90	3.17	0.080	0.079	-0.60
SE014S	430,866	6,693,795	178	83.8	-60.0	197	2	6	38.84	25.57	9.36	0.013	0.045	8.38
SE014S	430,866	6,693,795	178	83.8	-60.0	197	54	16	37.37	39.55	2.14	0.110	0.069	-0.40
SE014S	430,866	6,693,795	178	83.8	-60.0	197	76	10	33.65	41.93	2.84	0.079	0.287	-0.43
SE014S	430,866	6,693,795	178	83.8	-60.0	197	92	8	35.33	40.32	1.32	0.068	0.065	-0.81
SE014S	430,866	6,693,795	178	83.8	-60.0	197	122	10	39.00	40.83	0.98	0.060	0.083	-1.34
SE014S	430,866	6,693,795	178	83.8	-60.0	197	140	4	39.54	39.18	0.44	0.056	0.094	-0.61
SE014S	430,866	6,693,795	178	83.8	-60.0	197	146	4	37.93	39.21	0.82	0.054	0.079	-0.83
SE014S	430,866	6,693,795	178	83.8	-60.0	197	152	6	42.44	37.13	0.33	0.057	0.074	-1.65
SE014S	430,866	6,693,795	178	83.8	-60.0	197	160	8	38.51	39.43	1.48	0.046	0.383	-0.75
SE014S	430,866	6,693,795	178	83.8	-60.0	197	194	4	38.72	38.81	1.51	0.045	0.060	-1.24
SE015	430,895	6,694,041	174	88.0	-59.8	107	92	8	35.60	42.71	2.04	0.063	0.061	-1.21
SE016	430,997	6,694,046	175	74.6	-56.3	88	4	24	38.16	36.40	3.45	0.030	0.014	3.79
SE016	430,997	6,694,046	175	74.6	-56.3	88	34	6	37.69	38.66	1.61	0.041	0.024	1.54
SE018	431,024	6,694,278	171	83.8	-60.0	76	42	4	32.37	42.59	2.84	0.078	0.010	1.38
SE018	431,024	6,694,278	171	83.8	-60.0	76	64	12	36.25	41.69	1.36	0.076	0.115	-1.11
SE021	430,901	6,693,293	174	107.0	-58.6	143	18	8	33.92	35.68	6.47	0.051	0.036	7.15
SE021	430,901	6,693,293	174	107.0	-58.6	143	28	8	40.21	31.18	3.55	0.068	0.063	5.93
SE021	430,901	6,693,293	174	107.0	-58.6	143	68	6	31.35	44.52	3.49	0.089	0.125	0.21
SE024	431,005	6,693,546	178	105.6	-64.9	167	8	20	36.39	38.66	2.78	0.035	0.019	4.30
SE024	431,005	6,693,546	178	105.6	-64.9	167	40	10	37.65	40.41	1.45	0.071	0.035	0.51
SE024	431,005	6,693,546	178	105.6	-64.9	167	88	4	32.46	45.34	2.46	0.073	0.054	-0.87
SE027	430,966	6,693,795	178	79.7	-60.2	85	82	4	34.41	42.92	3.10	0.063	0.110	-1.73

RC drill samples collected at 1m intervals, assayed via 2m composites.

Intersections quoted at >30% Fe and >4m.

All coordinates in MGA94 Zone 53 and collected using hand-held GPS.

XRF results by AMDEL Adelaide.

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17 April 2012

ASX ANNOUNCEMENT

ABOUT APOLLO’S PROJECTS

Apollo Minerals Ltd (ASX Code: AON) is an iron ore and minerals explorer and developer with projects in South Australia and Western Australia. The Company’s key focus is to develop an iron ore project at each of Apollo’s project sites, namely the Pilbara, WA and the Gawler Craton, 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.

Commonwealth Hill straddles the

Adelaide to Darwin Railway line, 120km south west of the opal mining centre of Coober Pedy, 30km east of Challenger Gold Mine, 70km south-west of Cairn Hill and 100km west of Prominent Hill IOCG mines and 100km west of the Peculiar Knob DSO iron ore mine. The railway connects Commonwealth Hill directly with several ports capable of shipping iron ore.

The Titan Base Metals and Precious Metals Project is also part of Apollo’s large Commonwealth Hill holding (including the namesake Commonwealth Hill Iron Project) that covers an area of approximately 750 km[2] across three tenements in the central Gawler Craton of South Australia.

Apollo is currently evaluating the potential to develop a medium sized iron mine on the property. Drilling has identified both coarse grained magnetite and Direct Shipping Ore (DSO) style mineralisation including 24m at 57% Fe inclusive of 4m at 70% Fe. Previous work has highlighted the possibilities of producing premium quality iron concentrates and sinter fines products.

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 magnetite-bearing rocks at Apollo’s Mt Oscar Project outcrop over an oval shaped area measuring some 5km by 2km. The iron rich horizons are strikecontinuous 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).

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