( BW)(CO-APEX-SILVER-MINES)(SIL) Apex Silver Provides Operations
Update

Business Editors/Mining Editors

DENVER--(BUSINESS WIRE)--Feb. 25, 2008--Apex Silver Mines Limited
(AMEX:SIL) today provided an update regarding the San Cristobal mine,
exploration activities and organizational changes. The company expects
to release its 2007 earnings and file its report on Form 10-K for the
year ended December 31, 2007 on February 29, 2008.

San Cristobal 2008 Production and Ramp Up

In 2008, the company expects San Cristobal to produce
approximately 16 million ounces of payable silver at an average cash
operating cost ranging from approximately negative $3.00 to $3.50 per
ounce (the lead by-product credit, assuming a lead price of $0.80 per
pound, results in a negative cash operating cost for silver), 235,000
tonnes of payable zinc at an average cash operating cost ranging from
approximately $0.65 to $0.75 per pound, and 80,000 tonnes of payable
lead (the net smelter return value of lead is credited as a by-product
to silver production costs). The company expects metals production to
increase during each of the first three quarters of 2008 as the mine
ramps up to consistent full throughput rates by mid-year and as the
company continues to optimize concentrator performance.

Apex Silver is continuing to ramp up to full production at San
Cristobal. Mining of ore from the pit continues at the planned rate.
The concentrator has achieved throughput rates of approximately 40,000
tonnes per day on several days in the fourth quarter 2007 and in
February 2008. Throughput in January and February was constrained
primarily due to a shortage of process water resulting from well
failures caused by high water salinity. Both average throughput rates
and metal recovery rates have shown month to month improvement from
the commencement of production in August 2007, with throughput
currently averaging approximately 75% of designed capacity.

In January and February, the company has focused on improving the
reliability of process water by redrilling failed wells and repairing
or replacing damaged pumps. The company believes that there will be
adequate water commencing in March for production at designed rates
until the planned delivery and installation in the third quarter 2008
of larger stainless steel casings and pumps that should provide a
long-term solution. The company also is focused on metallurgical pilot
plant work to optimize the ore blends and recovery rates. Workforce
training in an operating plant environment continues and the company
continues to adjust designed process control systems to accommodate
the real-time operating environment. The company also continues to
improve the delivery of operating parts and supplies and to resolve
various start-up mechanical production issues. The company expects to
resolve most of these issues in the second quarter 2008.

Reserves

Proven and probable reserves for San Cristobal as of December 31,
2007 were calculated by WLR Consulting, Inc. using an $11.45 net
smelter return per tonne cutoff value and market price assumptions of
$10.76 per ounce silver, $1.19 per pound zinc and $0.73 per pound
lead. These prices represent the three-year average prices for each of
the metals through December 2007 as required by SEC guidelines.
Reserves are essentially unchanged from year-end 2006 as the decrease
from mining was mostly offset by additions of ore to the mine model
due to increased average metals prices. The following table shows
proven and probable sulfide and oxide reserves of silver, zinc, and
lead.


Proven and Probable Reserves
---------------------------------------------------
Average Grade Contained Metals (1)
--------------------- ---------------------
Tonnes Silver Zinc Lead Silver Zinc Lead
of ore Grade Grade Grade Ounces Tonnes Tonnes
(000s) (g/tonne) (%) (%) (000s) (000s) (000s)
------- --------- ----- ----- ------- ------ ------
Sulfide Ore
Proven 186,143 51.4 1.67 0.53 308,000 3,111 978
Probable 40,014 46.6 1.73 0.50 60,000 694 200
Oxide Ore
Proven 22,603 98.3 0.09 0.61 71,000 20 138
Probable 1,329 86.4 0.08 0.51 4,000 1 7
Total 250,089 55.1 1.53 0.53 443,000 3,826 1,323


(1) Amounts are shown as contained metals in ore and therefore do
not reflect losses in the recovery process. Sulfide ore reserves are
expected to have an approximate average recovery of 70% for silver,
89% for zinc and 87% for lead. Oxide ore reserves are expected to have
an average recovery of 60% for silver and 50% for lead. The estimated
strip ratio is 2.20:1.

Bolivia Political Matters Update

During 2007 the Bolivian government passed new mining tax
legislation. Under the newly adopted law mining companies must pay, in
addition to the pre-existing 25% income tax, an additional 12.5%
income tax when mineral prices are over defined thresholds ($5.55 per
ounce for silver, $0.53 for pound for zinc and $0.30 per pound for
lead). The new mining tax law provides that only 60% of the additional
12.5% income tax, or 7.5%, must be paid by companies producing a
value-added product. The company believes that the zinc and lead
concentrates produced by San Cristobal are value-added products. It is
not certain whether the government will agree with that position.
Regulations implementing the new tax law are not yet available, so the
precise effect of the changes is not yet certain.

Mining companies have also been subject under pre-existing law to
a mining royalty (Complementary Mining Tax) creditable against income
tax. Under the new mining tax law, a royalty has been imposed on
silver, which ranges from 3% to 6% based on current silver prices. At
prices above $8.00 per ounce, the maximum rate is in effect. Also
under the new mining tax law, the royalty is creditable against the
income tax when metals prices are below the thresholds referenced
above. If metals prices are higher than the thresholds, the royalty is
not creditable against income tax, but instead is deductible, reducing
the amount of taxable income.

In addition, under pre-existing law, a 25% surtax is triggered
when annual profits are in excess of $50 million after capital
investments are deducted. The company has been involved in discussions
with the Bolivian government regarding the possibility of eliminating
the 25% surtax.

In December 2007, the Bolivian Constituent Assembly approved a
draft constitution for the Republic of Bolivia. The draft constitution
provides, among other things, that mining companies will be required
to enter into mining agreements with the State within a year following
ratification of the constitution by public referendum. The draft
constitution does not describe the terms of such agreements. In order
to become effective, the draft constitution must be approved or
rejected by a national referendum that is expected to occur in 2008.

Exploration

In addition to San Cristobal, the company has a portfolio of over
75 exploration projects in six countries - Argentina, Mexico, Peru,
Bolivia, Ecuador and Australia. The company conducted drilling
activities on 12 projects during 2007 and plans to advance at least
four of those projects to a further stage of exploration.

The company has commenced the second round of drilling at the El
Quevar property in northern Argentina, where 2007 drilling established
the presence of high grade silver-lead mineralization in parallel
structures aggregating more than a mile in length and as much as 80 to
100 feet wide. This second drilling phase is designed to provide
close-spaced drill intercepts that can be used to support a
prefeasibility study. The company is establishing a larger camp and
has initiated baseline environmental studies. El Quevar is a joint
venture with Minera Hochschild under which the company has now earned
an 80% interest in the project. Sumitomo Corporation, the 35% owner of
San Cristobal, has an option to earn up to a 35% interest in the
company's interest in the El Quevar project, which would reduce the
company's interest to 52%.

The company has also identified a potentially significant
silver-zinc prospect at the Chinchilla property in northern Argentina.
Several cross-cutting breccia pipes contain disseminated
mineralization over an area of almost one mile in length and 1500 to
2000 feet in width. Test pits and trench sampling have returned values
ranging from 1% to 7% zinc and up to 400 grams per tonne of silver.
The company is conducting a geophysical survey of the area and plans
to initiate drilling in the second quarter 2008. The company controls
100% of the project. Sumitomo does not have an option to earn an
interest in the Chinchilla prospect.

Drilling is also underway at the company's 100 % owned Muleros
Project north of Zacatecas, Mexico. Twenty shallow drill holes have
been completed and mineralized veins have been intercepted in every
hole. Sumitomo has an option to earn up to a 35% interest in the
company's Zacatecas property, which includes the Muleros Project.

Complete drill and sample results will be published on the company
website.

Organizational Changes

Mike Bunch has been appointed Vice President/General Manager for
Minera San Cristobal, the company's Bolivian subsidiary that owns and
operates the San Cristobal mine. Mr. Bunch has over twenty years of
senior management experience in mining and mineral processing with
major companies including Phelps Dodge and Cyprus Amax. Mr. Bunch has
also led business improvement teams and has championed ISO and OHSAS
business standards and business processes.

Craig Patrick has been appointed Vice President, Organizational
Development for Apex. Mr. Patrick is a human resources executive with
more than 25 years of experience in the mining industry.

Earnings Calls Commencing with First Quarter Earnings

The company will schedule a conference call following its first
quarter 2008 earning release. An announcement and call-in instructions
will be provided in advance of the call.

Apex Silver is a mining, exploration and development company. The
ordinary shares of Apex Silver trade on the American Stock Exchange
under the symbol "SIL."

This press release contains forward-looking statements regarding
the company, within the meaning of Section 27A of the Securities Act
and Section 21E of the Exchange Act, including statements regarding
2008 production and average cash operating costs at San Cristobal;
efforts to resolve process water reliability issues and the increase
in available process water expected to result from these actions;
expectations regarding the resolution of start-up issues during the
second quarter; estimates of mineral reserves, the timing of a
referendum on the draft Bolivian constitution; and drilling activities
on the company's exploration properties. Actual results relating to
any and all of these subjects may differ materially from those
presented. Factors that could cause results to differ materially
include variations in ore grade; technical, mining or processing
issues; difficulty or delay in optimizing ore blends and recovery
rates; fluctuations in silver, zinc and lead prices; or delays in
ramp-up; problems with concentrator availability; inability to achieve
designed throughput; reliability of process water and delivery of
operating parts and supplies to the site, the effectiveness of
continued training of the plant workforce; problems in emerging
financial markets; changes in Bolivian government policies with
respect to taxes, mining concessions and other issues related to
mining; and other political unrest and uncertainty in Bolivia. The
company assumes no obligation to update this information. Additional
information concerning factors that could cause actual results to
differ materially from those in the forward-looking statements can be
found in the company's Form 10-K filed with the SEC for the year ended
December 31, 2006.

NON-GAAP FINANCIAL MEASURES

In this press release, the company uses the term "average cash
operating cost", which differs from measures of performance determined
in accordance with generally accepted accounting principles ("GAAP").
The company has included this information to provide investors with
data about the average costs associated with its mining activities so
that investors may have information regarding the cash generating
capabilities of the San Cristobal mine. This information should not be
considered in isolation or as a substitute for measures of performance
that will be prepared in accordance with GAAP. These measures are not
necessarily indicative of operating profit or cash flow from
operations to be determined under GAAP and may not be comparable to
similarly titled measures of other companies.

The term "average cash operating cost" includes estimated mining,
milling and mine related overhead costs. The per ounce of silver cost
also includes off-site costs related to projected silver refining
charges. The per pound of zinc cost also includes charges related to
transportation of zinc-silver concentrates and their projected
treatment and smelting charges. All cash operating costs exclude
taxes, depreciation, amortization and provisions for reclamation. The
average cash operating cost per ounce of silver is equal to the
pro-rata share of estimated average operating costs for the period
reduced by the estimated value of lead by-product credits for the
period and divided by the number of "payable ounces" of silver. The
lead by-product credits are net of charges related to transportation
of lead-silver concentrates and their projected treatment and smelting
charges. The "payable ounces" are the estimated number of ounces of
silver to be produced during the period reduced by the ounces required
to cover estimated refining, treatment and transportation charges for
the period. Average cash operating cost per pound of zinc is equal to
the pro-rata share of estimated average operating costs for the period
divided by the number of "payable pounds" of zinc. The "payable
pounds" are the estimated number of pounds of zinc to be produced
during the period reduced by the number of pounds required to cover
estimated refining, treatment and transportation charges for the
period. Estimated cash operating costs are allocated between silver
and zinc based on the revenue contribution from each metal using the
same prices the company uses for the purpose of calculating its
reserves under SEC guidelines.

--30--

CONTACT: Apex Silver Mines Corporation
Jerry W. Danni, 303-228-0336
Sr. Vice President Corporate Affairs



.