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1 ABN ASX ANNOUNCEMENT 18 FEBRUARY 2013 APOLLO CONFIRMS BASE METALS PROSPECTIVITY OF THE HIGHLIGHTS NORTHERN GAWLER CRATON Nickel-copper-platinum mineralisation confirmed at Apollo s Titan Base Metals Project IOCGU prospectivity significantly increased with identification of likely Gawler Range Volcanics at Titan Structural and prospectivity mapping confirms high potential setting for discovery of major base metals deposits at Titan Regional datasets reveal Apollo tenements are along strike to large IOCGU deposits, and known nickel sulphide prospects Recently completed base metals focused MLTEM, surface geochemistry and gravity survey results currently being verified CSIRO-led hydro-geochemical orientation study underway for local targeting of largescale base metals prospects Apollo Minerals Ltd (ASX: AON) ( Apollo or the Company ) is pleased to report that a review of published literature, combined with results from its ongoing exploration activities, has confirmed the potential for its project to host significant base and precious metals mineralisation including uranium-rich iron oxide-copper-gold-uranium (IOCGU) deposits and nickel sulphide (Ni-S) deposits similar to those of Canada s Thompson Nickel Belt. These findings come in support of public acknowledgement by Geoscience Australia (GA) and South Australia s Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) that the area is highly prospective for these deposit styles. Figure 1 depicts the current boundaries of GA s High Potential IOCGU Corridors which enclose the south eastern portion of Apollo s Titan Base- Precious Metals Project. Dominic Tisdell Chief Operating Officer T Level 9, 50 Margaret St, SYDNEY, NSW, 2012 Tony Dawe Investor Relations T F T

2 A technical exchange between DMITRE and the Canadian Geological Survey also identified a strong Thompson Nickel Belt analogue immediately south-west of the Titan Project, principally bound by the Fowler geological domain and the Coorabie Fault Zone, a major regional feature bisecting Apollo s tenements. DMITRE believes that favourable nickel sulphide geology extends into the Titan Project area, west of the dividing Coorabie Fault Zone. Dominic Tisdell, Chief Operating Officer said: The results of our review and recent field work are highly encouraging. Apollo believes it now has both the technical knowledge on the styles of mineralisation likely to be encountered in the northern Gawler Craton; and the well situated tenement holding required to make valuable discoveries in this world-class province. The emerging on-theground proof of this potential is an important step towards discovery and we look forward to keeping our investors fully informed of progress. Project Setting Apollo is actively exploring the Commonwealth Hill area, host to the Titan Base Metals and Commonwealth Hill Iron Projects in the northern Gawler Craton of South Australia. The site is located 110 km southwest of Coober Pedy and is situated within the eastern portion of the Christie Domain, a vastly under-explored region attributed in part to its remote setting; extensive, shallow sand cover; historic Woomera Prohibited Area access issues and focus on discovery of Challengerstyle narrow vein, high grade gold. Regional geology remains poorly understood. A number of mineral deposits, prospects and operating mines typical of the target mineral systems exist in the immediate project area as listed in Table 1 and shown in Figure 1. TABLE 1 List of projects close to the Titan Base-Precious Metals project area Name of Project Commodity Approximate Distance km Direction from Titan Project Challenger Mine Gold 60 West Cairn Hill Mine Iron - Copper 110 Northeast Prominent Hill Mine Copper - Gold 130 East Olympic Dam Mine Copper Gold - Uranium 260 East Southeast Carrapateena Copper - Gold 350 Southeast Aristarchus Nickel Nickel 85 Southwest Durkin Nickel Copper - Nickel - Uranium 75 Southwest Structurally, the Titan Base-Precious Metals Project is located along the centreline of the east-southeast to west-north-west trending G9 O Driscoll Lineament Corridor (Figures 1 to 3). Industry awareness continues to increase regarding the importance of the O Driscoll Lineament Corridors and their association with the location of major mineral deposits. Most recently, work derived from the South Australian lineament programme was used in the discovery of the Carrapateena IOCGU 2

3 deposit along trend from Apollo s Titan Base-Precious Metals Project. It has been estimated that, as of 2003, over half of South Australia s known mineral occurrences were situated in either the G2 or G9 Lineament Corridors. Figure 1 Location of Apollo tenements in relation to significant deposits of the Gawler Craton Further review by Apollo has confirmed significant differences between the characteristics of the Titan Base-Precious Metals project area east and west of the bisecting Coorabie Fault Zone. The Eastern Block (east of the bisecting Coorabie Fault Zone) is host to a number of Apollo s exploration prospects including the large Wirrida Intrusive Complex, Acacia East and Bundi anomalies which have been classified as high priority base and precious metals targets by the Company. Apollo believes that this Eastern Block shares many more similarities with the domains immediately east and south of the Eastern Block than the relatively well studied portion of the Christie Domain situated west of the dividing Coorabie Fault Zone (Western Block). As such, Apollo recognises that the Eastern Block may in-fact represent a sub-domain to, or be part of the surrounding Olympic, Wilgena, or Mt Woods Domains (Figure 2), all of which display significant quantities of early 3

4 Paleoproterozoic (1,800 Ma) to early Mesoproterozoic (1,400 Ma) aged rocks, several of which eg Hiltaba Suite Granites, host world-class uranium-rich IOCGU deposits. This suggestion has significant implications for the Titan Base-Precious Metals Project to host major base metal resources including mineralisation associated with IOCGU systems. Figure 2 Geological domain classification of the Gawler Craton Existing geochronological dates within the Christie Domain appear to show that two distinct age groups exist. A distinct western zone centred near the Challenger Gold Mine hosts sample sites with ages ranging from Mesoarchaean (3,200 Ma) to late Paleoproterozoic (1,800Ma); and an eastern zone centred along the Coorabie Fault Zone ranging from circa 1,800Ma to the early Mesoproterozoic (1,400Ma). Assessment of major regional fault zones within the Gawler Craton by groups including Geoscience 4

5 Australia and the University of Adelaide s CERG has identified that the Coorabie Fault Zone was active during the Mesoproterozoic and that the area may in fact have undergone significantly more tectonic juxtaposition and intrusion by mantle derived magmas than previously thought. Recent Exploration Results Identification of possible Gawler Range Volcanics A significant part of Apollo s recent field work has focused on detailed mapping of granitic and volcanic units, particularly the identification of possible Hiltaba Suite Granite and other Gawler Range Volcanics (GRV) equivalents thought to be important in the formation of large, high quality South Australian IOCGU systems. So far, eleven unofficially mapped occurrences of potential GRV have been identified in the Eastern Block (Figures 3 and 5) including potential Hiltaba Suite Granites, meta-diorite, flood basalts, porphyritic rhyolites, volcanic tuff, Balta Granite and Engenina Adamellite equivalents, some of which display likely fluorite enrichment including veining (Figure 4). Several of these sites were located by previous explorers through surface sampling and drilling but were not followed up. Apollo is currently attempting to confirm the genesis of these samples with specimens awaiting assay. Petrology is to follow. Figure 3 Apollo tenement location plan showing regional magnetics showing Coorabie Fault Zone bisecting the area into the Western and Eastern blocks, known and potential GRV sites (pink, red) 5

6 Figure 4 Likely fluorite veining in GRV rock sample from Titan, as shown in ultra-violet light Figure 5 Location of historic drilling, potential GRV sites and specimen photos The location and widespread nature of the potential GRVs identified combines to form a logical extension to the official mapping of these rock units and reconfirms the high potential for the discovery of IOCGU deposits in this region as acknowledged by Geoscience Australia. 6

7 Thompson Nickel Belt Analogy There has been close synergies documented between the Thompson Nickel Belt in northern Manitoba, Canada and the Fowler Domain of the Gawler Craton, South Australia. The Fowler Domain is adjacent to the Christie Domain and is located to the south west from Apollo s Titan project area and is situated on a dominant north-easterly trending Coorabie Fault Zone and a prominent gravity feature which hosts the Aristarchus Ni-S and Durkin Ni-S Prospects (Figure 6). Some of the broad similarities which can be defined include large scale crustal fractures allowing for pathways of magma emplacement, similar sulphide-bearing lithologies of sedimentary origin, and the existence of mafic-ultramafic intrusive and extrusive rocks which have undergone multiple deformation events allowing for nickel enrichment and re-mobilisation of massive sulphides. Aristarchus magmatic nickel sulphide FIGURE 6 Location of the Fowler Domain, Gawler Craton showing the major crustal features associated with the Coorabie Fault Zone (CFZ) and Apollo s Titan project area 7

8 Confirmation of nickel-copper-platinum mineralisation Review of historic exploration drilling results across the Titan project area has identified a number of Ni, Cu and PGE intercepts across the project area (Figure 7). Significant intercepts at the Birthday and Acacia prospects are also shown to be associated with the presence of mafic and ultra-mafic lithologies. Intercepts at the Birthday Prospect include 850ppb Au, 2.0g/t Ag, 480ppm Cu, 0.31% Ni and 0.12% Zn. Notable intercepts on the Acacia Prospect include 12.0g/t Au, 310ppm Cu, 0.32% Ni and 0.21% Zn. Figure 7 Apollo s Titan project area showing historical drill intercepts across various prospects Hydro-Geochemistry in Mineral Exploration The use of hydro-chemistry for mineral exploration is increasing worldwide, and has an established founding from various studies conducted by the Coorporative Research Centre for Landscape Environments and Mineral Exploration and the CSIRO. Apollo has initiated an orientation study led by the CSIRO to use hydro-geochemistry as an exploration tool to target large base metal provinces in South Australia. Water samples have been collected from existing water bores across the Titan Project area and currently being assayed to examine the use of PGE and multi-element indices as pathfinders in locating base metal deposits. Assay results are expected during 1 st Quarter,

9 FOR FURTHER INFORMATION CONTACT: Richard Shemesian Dominic Tisdell Executive Director Chief Operating Officer Tel: Tel: Media and Investor Enquiries: James Moses Tony Dawe Mandate Corporate Investor Relations james@mandatecorporate.com.au tony.dawe@ppr.com.au Tel: Tel: COMPETENT PERSON DECLARATION The information in this Report that relates to 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. 9

10 About Apollo Minerals 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 focus is development of iron ore and base metals projects at each of Apollo s project sites, initially at Commonwealth Hill, SA. The Commonwealth Hill site in the Gawler Craton of South Australia is situated close to existing infrastructure including the Darwin-Adelaide railway line, highway, ports. The Sequoia iron ore project contains a JORC code compliant Indicated and Inferred mineral resource estimated at 72 mt at 25.9% Fe (at 15% Fe cut-off) 1, with an combined exploration target 2 for the Ibis and Sequoia prospects ranging from Mt at 25 35% Fe. Apollo also holds 100% interest in the Mt Oscar Iron located near Karratha, in the Pilbara region of Western Australia. In Gabon, West Africa, Apollo has a 70% interest in the Kango North Iron Project. Apollo s shareholders include a number of iron and steel producers including one of India s largest companies, Jindal Steel and Power Ltd. The Company is actively pursuing exploration across its tenements with the aim of furthering development and adding growth to shareholder value. 1 The Indicated component of the mineral resource equates to 27% containing 19.4 Mt at 27.7% Fe. The Inferred component equates to 73% and comprises 52.6 Mt at 25.3% Fe. 2 The estimates of Exploration Target sizes mentioned in this announcement should not be misunderstood or misconstrued as estimates of Mineral Resources. The potential quantity and grade of the exploration targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource, and it is uncertain if further exploration will result in the determination of a Mineral Resource. 10