Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

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Monday, May 05, 2008

Apollo Gold Retains Macquarie Bank and RMB Resources as Joint Arrangers and Underwriters of Debt Financing for its Black Fox Project

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DENVER, May 05, 2008 (BUSINESS WIRE) ----Apollo Gold Corporation ("Apollo") (TSX: APG) (AMEX: AGT) is pleased to announce that it has retained Macquarie Bank Ltd. ("Macquarie") and RMB Resources Inc. ("RMB") as joint arrangers and underwriters for a U.S.$75 million project finance facility to fund development capital for the Black Fox Gold Project ("Black Fox") located in Ontario, Canada. The retention of Macquarie and RMB does not constitute a financing offer and any such financing offer will be subject to receipt of formal internal credit approvals, due diligence and delivery and acceptance of a binding term sheet.

"Completion of the feasibility study was the first important step on the road to production at Black Fox and the retaining of RMB and Macquarie as arrangers and underwriters for the debt component of funding is the second important step for this robust project," said David Russell, President & CEO of Apollo. "Macquarie and RMB are quality project financing banks and they will be working closely with Apollo and our consultants during the coming weeks to minimize the time required to access project financing. Having a significant debt component in the overall development cost of Black Fox will reduce equity dilution and should increase shareholder returns."

On April 15, 2008 Apollo announced the results of the bankable feasibility study ("BFS" or "Study") for Black Fox. The Study was prepared by SRK Consulting ("SRK"), Denver, Colorado. As used herein the term "bankable feasibility study" means a comprehensive analysis of a project's economics (+/- 15% precision) which Apollo believes would be acceptable to a lender in making a determination as to whether to provide financing.

Highlights of the Bankable Feasibility Study include:

-- Net Present Value ("NPV") of $302 million using a gold price per ounce of $750,

-- Preproduction capital costs of $86.9 million,

-- Internal Rate of Return ("IRR") of over 62% and capital payback of 2.0 years,

-- Gold production of over 150,000 ounces annually over the life of the project,

-- Average total cash costs for first three years of production estimated at $326 per ounce,

-- 1.33 million contained ounces of gold in probable reserves.

The mineral reserves shown in the table below formed the basis of the BFS and were calculated based on a gold price of U.S.$650/oz.

 Black Fox Probable Reserve Statement as of February 29, 2008 Cut-off Au (grams of gold Grade (grams
   of Mining Method per tonne) Tonnes gold per tonne) Contained oz Au ----------------------------------------------------------------------
   Open Pit 1 4,350,000 5.2 730,000 ---------------------------------------------------------------------- Underground(1) 3 2,110,000
   8.8 600,000 ---------------------------------------------------------------------- Total 1,330,000 ----------------------------------------------------------------------
   (1)Underground Reserves assume 95% mining recovery 17% planned dilution and 5% unplanned dilution both at 0 gpt grade.

Apollo Gold Corporation

Apollo is a gold mining and exploration company which operates the Montana Tunnels Mine, which is a 50% joint venture with Elkhorn Tunnels, LLC, in Montana, the Black Fox advanced stage development project in Ontario, Canada, and the Huizopa project, an early stage exploration project in the Sierra Madres in Chihuahua, Mexico.

This press release has been reviewed and approved for release by Richard Nanna, Professional Geologist, Apollo's Senior Vice-President, Exploration and Development. Mr. Nanna is designated a "Qualified Person" under Canadian Instrument NI 43-101.

FORWARD-LOOKING STATEMENTS

This press release includes "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by the use of words such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "intends," "continue," or the negative of such terms, or other comparable terminology. All statements regarding estimated reserves and resources of the Black Fox project, the stated assumptions contained in the Study, commencement of production at Black Fox statements regarding development of a mine at Black Fox, the commencement of production at Black Fox, successful completion of project financing at Black Fox are forward-looking statements that involve various risks and uncertainties. There is no assurance that the proposed $75 million project financing facility will be finalized. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from these forward-looking statements include: increases in anticipated cash costs, operating costs, mining costs, capital expenditures and other costs; decreases in anticipated plant gold recoveries and gold prices; delays or problems in construction, permitting and start-up; variations in ore grade, mining, or processing problems or issues, 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. All forward-looking statements included in this press release are based on information available to Apollo on the date hereof. Apollo assumes no obligation to update any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

The term "total cash costs" is a non-GAAP financial measure and is used on a per ounce of gold basis. Total cash cost is equivalent to direct operating cost as would be found in our financial statements and would include by-product credits for payable silver production. We have included total cash cost information to provide investors with information about the planned cost structure of Black Fox mining operation. This information differs from measures of performance determined in accordance with GAAP in Canada and in the United States and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. This measure is not necessarily indicative of operating profit or cash flow from operations as determined under GAAP and may not be comparable to similarly titled measures of other companies.

SOURCE: Apollo Gold Corporation

Apollo Gold Corporation Marlene Matsuoka, 720-886-9656 Ext. 217 Investor Relations
   Toll Free: 1-877-465-3484 info@apollogold.com www.apollogold.com